Relief for Investment in Renewable Energy Generation

This incentive came into force on 18 March,1999. The main provisions are as follows:

A company can get a deduction of the amount of a relevant investment made by it in a qualifying company i.e. a company carrying out a renewable energy project. A renewable energy project means a renewable energy project as certified by the Minister for Communications, Marine & Natural Resources in one or more of the following categories of technology -

    solar power,

    windpower,

    hydropower, and

    biomass.

The amount that can be invested in any one project cannot exceed -

50 per cent of the relevant cost of the project, or €9,525,000, whichever is the lesser.

A company can, however, invest up to €12.7m in various projects in a twelve month period.

Accelerated Capital Allowances for Energy Efficient Equipment
eg lighting, energy management systems or motors/drives

The Finance Act 2008 further provides for accelerated capital allowances (up to 100% in year one) in respect of expenditure by companies on certain energy efficient equipment bought for the purpose of the trade. It will run for a trial period of 3 years and applies only to companies, not individuals. Certain restrictions apply.

Please contact DG International Tax for further details at info@dgitax.com