Michael McGrath (Cork South Central, Fianna Fail)
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Question 597: To ask the Minister for Communications, Energy and Natural Resources his views on the inclusion of a product (details supplied) in the list of energy efficient equipment in accordance with Section 46 of the Finance Act 2008. [5059/10]

Eamon Ryan (Dublin South, Green Party)
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The Accelerated Capital Allowance (ACA) scheme is a tax incentive available for companies paying corporation tax and aims to encourage investment in energy efficient equipment. The ACA allows a company to cut its taxable income by 100% of the capital cost of eligible energy efficient equipment in the first year of purchase. This compares to just 12.5% for ineligible plant and machinery. Since its inception, the scope of the scheme has been subject to frequent review and expansion, the most recent of which was announced in Budget 2010. Seven energy efficiency equipment categories, including lighting, are currently eligible under the scheme, with a further three categories to be introduced in the first half of this year. Sustainable Energy Ireland (SEI) is responsible for preparation of energy efficiency criteria and maintenance of the database of eligible products.

Currently, the eligible lighting control technologies under the ACA scheme are based on the use of intelligent sensors to control lighting levels and operation periods. The primary intention is to allow constant adaptation of the lighting levels to immediate environmental needs and occupancy levels in a building. This type of technology is thus focused on applications in buildings, rather than outdoor lighting where lighting needs and levels are determined by predetermined daily and seasonal cycles.

For this reason, a lighting control technology of the kind in question that is based on voltage regulation and timers, would not typically meet the criteria for lighting control equipment under the ACA scheme. Notwithstanding this, investigation has commenced into the possibility of including a greater variety of lighting technologies under the scheme, including technologies that cover street lighting. The lighting control technology in question is part of this review process, which is expected to be concluded in the first half of this year.