Michael McGrath (Cork South Central, Fianna Fail)
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Question 286: To ask the Minister for Communications, Energy and Natural Resources if there are grant supports or other incentives available to a company wishing to install a HIBrite energy efficient lighting system at its retail premises. [20082/08]

Eamon Ryan (Dublin South, Green Party)
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Section 46 of the Finance Act 2008 provides that companies may claim 100% of the capital cost of certain energy efficient plant and machinery, including lighting, against taxable profits in year of purchase. The scheme is expected to commence in July 2008 and run for 3 years. Other product categories covered are lighting controls, motors, variable speed drives and building energy management systems.

The purpose of the scheme is to encourage businesses to purchase plant and machinery that is highly energy efficient. Over the lifetime of such products, the energy used is generally a more significant cost to business than the purchase cost. Energy efficient products are more economical over their lifetime and are a sound investment for business. However, despite their economic advantages, businesses have been slow to change their purchase habits. I expect that the tax incentives provided through this scheme will help persuade companies to re-evaluate their purchase policies.

Sustainable Energy Ireland (SEI) has drafted product efficiency criteria following a public/industry consultation and these are likely to be published in the coming weeks, with an invitation to manufacturers to submit their eligible products for inclusion on the Approved List for the purpose of the Section 46 tax allowance. It will be necessary for the manufacturers or suppliers of HIBrite to assess their products against these criteria and if deemed eligible, to apply to SEI for inclusion on the List. I expect to make an Order under Section 46 in July this year adopting the efficiency criteria in law, together with the Approved Lists of products under those criteria.