Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I move amendment No. 65:

In page 59, between lines 20 and 21, to insert the following:“Acceleration of wear and tear allowances for certain energy-efficient equipment
38. (1) The Principal Act is amended in the Table in Schedule 4A by inserting the following in column (2) opposite the reference in column (1) to “Electric and Alternative Fuel
Vehicles”:
“Natural Gas Vehicles and Associated Equipment: Natural gas vehicles and relevant required fuelling equipment that meet specified efficiency criteria.
Natural Gas Vehicle Conversions: Equipment for the conversion to natural gas or biogas as a primary fuel for existing commercial vehicles, that meet specified efficiency criteria.”.

(2) Subsection (1) shall come into operation on 1 January 2014.”.

This amendment extends the tax incentive aimed at supporting investment by companies in new energy-efficient equipment. The amendment will help to improve energy efficiency while helping companies to be more competitive in sectors such as transport and distribution. The scheme which was introduced in the 2008 Finance Act provides for accelerated capital allowances of 100% to companies in the year in which certain new equipment is purchased. The expenditure must be incurred on equipment listed under one of the ten energy-efficient categories covered by the scheme. The category of electric and alternative fuel vehicles is being extended to include natural gas-powered vehicles and associated fuelling equipment and natural gas vehicle conversions. I have been advised by my colleague, the Minister for Communications, Energy and Natural Resources, that such vehicles meet the policy objectives for energy efficiency and that the use of such vehicles in Ireland should be promoted. The section will come into operation on 1 January 2014. As done previously for the existing categories, the Minister for Communications, Energy and Natural Resources, will make an order listing the products that will be eligible under the extended category. Expenditure must be at or above a minimum amount in order to qualify for the increased allowances. I commend the amendment to the committee.