Ciarán Lynch (Cork South Central, Labour)
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Question 180: To ask the Tánaiste and Minister for Finance the tax incentives in place to encourage the use of energy efficient or energy saving and monitoring equipment at both a private domestic household level and industrial or commercial level; if he will introduce or create additional tax incentives in this area; and if he will make a statement on the matter. [10546/08]

Ciarán Lynch (Cork South Central, Labour)
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Question 181: To ask the Tánaiste and Minister for Finance the tax incentives in place to encourage the use of energy efficient or energy saving equipment at both a private domestic household level and industrial or commercial level; if he will introduce or create additional tax incentives in this area; and if he will make a statement on the matter. [10547/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 180 and 181 together.

In Finance Bill 2008, I introduced a new tax initiative to encourage the use of energy efficient equipment by companies. This accelerated capital allowance incentive will allow companies to claim the full cost of specified energy efficient equipment against their taxable income in the year of purchase. Expenditure must be above a certain minimum amount for each class of technology covered by the scheme. A list of approved products covering 3 classes of technology namely, motors and drives, lighting and building energy management systems will be established, and may be amended, by order of the Minister for Communications, Energy and Natural Resources. Sustainable Energy Ireland (SEI) will be responsible for maintaining the list. The purpose of this incentive is to reduce overall energy demand, reduce carbon emissions while helping to assist in improving companies' cost competitiveness.

The scheme will be confined to new energy efficient equipment purchased by companies and it will not apply to equipment that is leased, let or hired. The scheme is in the nature of a "pump-priming" exercise, is limited to a period of three years and will come into effect by order when EU State-aid approval is obtained. There will also be benefits and savings to investing companies as well as the economy and the environment generally, from the increased use of energy-efficient equipment. It is hoped that over time companies and business will see the ongoing value of investing in energy-efficient equipment in terms of the improved economic returns to themselves as well as the environmental benefits to society, generally. I have no plans at this time to introduce or create additional tax incentives in this area.