Brian Walsh (Galway West, Independent)
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235. To ask the Minister for Finance the range of incentives available in respect of the development and operation of nursing homes; and if he will make a statement on the matter. [24645/15]

Michael Noonan (Limerick City, Fine Gael)
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Capital expenditure incurred on registered private nursing homes qualifies for capital allowances in the form of an industrial building annual allowance at the rate of 15% over 6 years and 10% in the seventh year. Capital allowances are granted for such capital expenditure incurred on the construction or refurbishment of a building providing that the building is in use for the purposes of the trade. In this regard, capital expenditure on registered private nursing homes must have been incurred during the period 3 December 1997 to 31 December 2009. This termination period was extended to 30 June 2010 where the work to be carried out did not require planning permission, provided at least 30% of the construction and refurbishment costs had been incurred on or before 31 December 2009.  Where planning permission was required, the termination period was further extended to permit expenditure incurred up to 30 June 2011 to qualify provided a full and valid application for planning permission was submitted on or before 31 December 2009 and acknowledged by the planning authority.

Expenditure on the construction or refurbishment of residential units associated with a registered private nursing home also qualified for capital allowances by treating the unit as if it were a building in use for a trade of operating or managing a such a home subject to certain conditions.  Qualifying expenditure can also be written off at a rate of 15% over 6 years and 10% in the seventh year. The allowances were originally available for qualifying expenditure incurred in the five-year period commencing on 25 March 2002. The termination date was extended to 31 July 2008 in Finance Act 2006 but the amount of qualifying expenditure was restricted to 75% of that incurred in the period from 25 March 2007 to 31 December 2007 and to 50% of that incurred in the period 1 January 2008 to 31 July 2008. Finance Act 2007 further extended the qualifying period to 30 April 2010, but only where the expenditure was incurred on or after 1 May 2007 where development was carried out on foot of contracts entered into on or after that date. Where the contracts were entered into before that date, the termination date remained at 31 July 2008 with qualifying expenditure being subject to the 75% and 50% caps on expenditure. Although an extended termination date to 30 April 2010 applies, there is a further restriction on qualifying expenditure. Qualifying expenditure was reduced to 50% of that actually incurred in the case of individuals and to 75% in the case of companies.

As the Deputy will be aware, my Department carried out a review of the Employment and Investment Incentive (EII) in advance of the last Budget. As a result of the review, I extended the EII to include the management and operation of nursing homes for 3 years, subject to approval from the European Commission. It is not possible to provide a timeframe for receipt of the Commission's approval but my officials will be engaging closely with the Commission to ensure that it can be provided as soon as possible. Finally, I would advise the Deputy that registered private nursing homes are exempt from the Local Property Tax.