Violet-Anne Wynne (Clare, Sinn Fein)
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121. To ask the Minister for Finance if a special grant or tax measure will be considered for businesses to acquire more energy efficient equipment as a special short-term measure during the current energy crisis; and if he will make a statement on the matter. [46745/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy may be aware that the tax code already provides an incentive to encourage businesses to invest in energy efficient equipment. The Accelerated Capital Allowance (ACA) scheme for Energy Efficient Equipment (EEE) is provided for in Section 285A of the Taxes Consolidation Act 1997. The ACA scheme for EEE allows taxpayers to deduct the full cost of expenditure on eligible equipment from taxable profits in the year of purchase. This differs from the standard treatment applicable to capital assets, whereby wear and tear is taken into account as a deduction for tax purposes at a rate of 12.5% annually, over eight years.

The purpose of the scheme is to provide a tax incentive for companies and sole-traders to invest in highly EEE, to improve the overall energy efficiency of Irish companies and sole-traders, and to aid Ireland in meeting our national and EU targets on energy savings and the reduction of carbon emissions.

In order for equipment to qualify for the scheme it must meet detailed energy efficiency criteria as set by the Sustainable Energy Authority of Ireland (SEAI). Products which meet these criteria are listed on the SEAI’s Triple E Register which provides a benchmark register of best in class energy efficient products. There are approximately 30,000 eligible products on the SEAI’s Triple E Register across 10 classes of technology.

ACA on EEE is claimed through the normal self-assessment provisions, there is no requirement to obtain prior approval for capital expenditure on the equipment. The allowance should be claimed on the person’s return of income, the Form CT1 for a company or Form 11 for an unincorporated business (sole-trader or member of a partnership). Both the CT1 and Form 11 include a separate line for claims made under section 285A, allowing claimants to separately claim wear and tear allowances for other plant and machinery.

To establish whether equipment qualifies for the ACA scheme for EEE, taxpayers can search for the equipment on the Triple E Products Register on the SEAI website at the link below: triplee.seai.ie/AcaProducts/Search.aspx.