Mairead Farrell (Galway West, Sinn Fein)
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195. To ask the Minister for Finance the total cost of capital allowances related to accelerated depreciation in each of the years 2018, 2019, 2020 and 2021, in tabular form; and if he will make a statement on the matter. [9295/23]

Michael McGrath (Cork South Central, Fianna Fail)
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There are three Accelerated Capital Allowance (ACA) schemes currently in operation, each of which can provide a 100% deduction in year one for certain qualifying expenses incurred by businesses.

The ACA scheme for Energy Efficient Equipment aims to support businesses in choosing more energy-efficient options when purchasing plant and equipment for business use. The scheme allows taxpayers to deduct the full cost of expenditure on eligible equipment from taxable profits in the year of purchase.

The second ACA scheme is for Gas-Propelled Vehicles and Refuelling Equipment used for business purposes. Finance Act 2021 expanded this scheme to include hydrogen-powered vehicles and refuelling equipment. This scheme contributes to the work of the Department of Transport’s Task Force on Low Emitting Vehicles and to achieving our national target to transition to a low carbon economy.

The third scheme, ACA for Childcare Services and Fitness Centres was introduced in Finance Act 2017, and commenced in Finance Act 2018, and encourages employers to develop childcare facilities and fitness centres for their employees. The rationale for this relief is to help tackle the cost and availability of childcare facilities, both of which have been cited as barriers to work.

The annual cost attributed to ACA schemes is largely a temporal cost only as, with the exception of some elements of the ACA for Childcare Services and Fitness Centres, these are costs for which a business would otherwise receive a deduction over the standard write-down period of 7 years.

Noting this caveat with regard to the costings, figures for the years 2018 to 2020 in respect of the energy efficient equipment and gas/hydrogen vehicles schemes are available in Revenue’s tax expenditures report at the following link: www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/index.aspx. The ACA for Childcare Services and Fitness Centres became operational in 2019 and the report contains available data for the years 2019 and 2020. Figures for the year 2021 are not yet available, but will be published in due course in future updates to the Revenue report.