Liz McManus (Wicklow, Labour)
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Question 98: To ask the Tánaiste and Minister for Finance if he will include micro combined heat and power systems as part of the energy efficient technologies under the enhanced capital allowances; and if he will make a statement on the matter. [15956/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In Finance Act 2008, I introduced a new tax initiative to encourage the use of energy efficient equipment by registered companies. Section 46 allows companies to claim the full cost of energy efficient equipment, within specified classes of technology, against their taxable income in the year of purchase. The classes of technology are: lighting (including controls); motors and drives (variable speed drives); and building energy management systems. The list of approved products is being established by order of the Minister for Communications, Energy and Natural Resources. Sustainable Energy Ireland (SEI) is responsible for maintaining this list. As micro combined heat and power (CHP) units do not fall within any of the specified classes of technology they would not attract accelerated capital allowances.

However, I have been informed by the Department of Communications, Energy and Natural Resources that should the micro CHP unit contain as a component, a motor or variable speed drive that meets the efficiency criteria specified in Regulations made by the Minister for Communications, Energy and Natural Resources in accordance with section 46, and provided that all other requirements of section 46 are met, then the value of that motor or drive may be eligible for the allowances.

It should be noted that the Minister for Communications, Energy and Natural Resources launched a new pilot Microgeneration Programme on 16 April which will be making available financial supports for the installation of certain small scale renewable electricity generation technologies. Micro CHP may be eligible for this Programme. Sustainable Energy Ireland will be making available further details of the Programme in the coming months.