James Bannon (Longford-Westmeath, Fine Gael)
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Question 197: To ask the Minister for Finance if he will double the capital allowance for 6,000 installations as a pilot project to promote investment by farmers in micro generation of renewable energy from a range of sources, wind, solar and anaerobic; and if he will make a statement on the matter. [33732/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Plant and machinery used for the generation of energy from renewable sources already qualifies for capital allowances at the rate of 121⁄2 per annum over 8 years. Allowing farmers double capital allowances would be excessively generous and would inevitably lead to calls for similar concessions from other sectors.

In addition I should point out that there are already tax incentives in operation which relate to renewable energy. Investments in companies engaged in renewable energy generation may qualify for the Business Expansion Scheme (BES) tax relief. Individual investors holding a BES equity investment in such companies for a minimum period of five years can benefit from tax relief, at their marginal rate, in respect of investments of up to €150,000 per year.