Homes affected by pyrite are to be exempt from the new property tax.
The Finance Minister Michael Noonan made the announcement in the Dail as he introduced legislation to bring in the tax next year.
The majority of pyrite-affected homes have no market value but under the Bill even properties worth nothing incur a charge of €90.
Pyrite is a mineral found in broken stone that oxidizes when it comes into contact with moisture and oxygen to produce sulphuric acid.
The acid causes the broken stone to swell which in-turn causes the floor slabs in buildings to lift and crack.
Environment Minister welcomes move
The Minister for the Environment Phil Hogan has welcomed the announcement.
"I lobbied my colleague the Minister for Finance to provide a waiver for the owners of properties where damage from pyritic heave has been proved by testing and I am glad that he has acceded to my request and he will address this issue in the context of the Finance Bill" he said.
The Minister established the Pyrite Panel in September 2011 with the remit of exploring options for a solution to the problem of pyrite in private housing.
Last July the Minister published the final report of the panel which contained 24 recommendations towards resolving this problem.
Priority is being given to the recommendations dealing with the establishment of a Resolution Board as well as the development of protocols for the testing and categorisation of dwellings and a remediation method statement.
"Affected homeowners have been waiting to get a resolution to this complex problem. This announcement today of where a waiver would apply in respect of pyritic heave is only one component of the complex process in providing for a solution to the pyrite issue" the Minister concluded.
Michael Noonan meanwhile has said he would ensure that the owners of pyrite homes would not have to pay the new tax.