Catherine Callaghan (Carlow-Kilkenny, Fine Gael)
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23. To ask the Minister for Finance the progress of the agri-taxation measures relating to farm safety to encourage capital investment to reduce accidents and make farms a safer workplace; and if he will make a statement on the matter. [16103/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 285D of the Taxes Consolidation Act 1997 provides for a scheme of accelerated capital allowances for capital expenditure incurred on qualifying farm safety equipment, and adaptive equipment for farmers with disabilities. The aim of the accelerated capital allowance scheme is to incentivise the purchase of farm safety equipment, and the replacement of equipment that may be old or sub-standard. The measure is also designed to assist farmers who have a disability to continue work, with certain adaptive equipment also eligible for the scheme.

The scheme is available to persons carrying on a trade of farming that incur capital expenditure on certain items of farm equipment purchased between 1 January 2021 and 31 December 2026.

The scheme was first provided for in Finance Act 2020 and extended in the Finance Act 2023 for a further three years to the 31 December 2026. In addition, the list of items qualifying for relief was expanded by section 40 of the Finance Act 2024 to include certain Targeted Agriculture Modernisation Schemes (known as TAMS) as eligible safety equipment with a 6 further items included in the list of qualifying equipment. With effect from 1 January 2025, fixed sheep handling units, cattle crushes and races, calving gates, flood lights, livestock monitors and sliding or roller doors now also qualify for accelerated capital allowances.

Subject to certification of expenditure by the Minister for Agriculture, Food and the Marine, the person will be entitled to claim wear and tear allowances on the expenditure over a period of two instead of eight years, subject to a maximum of €500,000 on the total amount of relief that can be granted to any person under the scheme. This accelerated capital allowance of 50% per year for two years may be claimed in respect of the capital expenditure incurred on eligible equipment subject to a total equipment cost of €5 million per annum excluding VAT.