Michael McGrath (Cork South Central, Fianna Fail)
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61. To ask the Minister for Finance if the ministerial order commencing section 268(1)(n) of the Taxes Consolidation Act 1997 capital allowances for aircraft hangars has been issued; and if he will make a statement on the matter. [42329/14]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, a scheme of accelerated capital allowances for the construction and refurbishment of certain buildings and structures for use in the maintenance, repair or overhaul of commercial aircraft, and the dismantling of such aircraft for the purposes of salvaging or recycling of parts or materials was announced in Budget 2013.  An application for State Aid approval for the scheme was subsequently made to the EU Commission.

The Commission formed the view that the scheme in its current form is not compatible with any State Aid guidelines. Following on from meetings and discussions with officials from the Commission, a revised application was recently submitted, which I hope will lead to a positive result in the near future. Discussions are continuing. In the meantime, an amended provision has been included in the current Finance Bill, in order to address the concerns already communicated by the Commission.