Tax Relief

The tax relief scheme, part of Finance Act 1998, came into effect in 1999. Corporate equity investments in certain renewable energy projects, namely hydro, solar, wind power and biomass, are eligible for tax relief in the form of a deduction from a companys profits for an investment in new ordinary shares in a qualifying company. The relief is capped at 50% of all capital expenditure (excluding land), net of grants, on a single project up to I£ 7.5 million. Investment by a company or group of companies in more than one qualifying energy project is capped at I£10 million per year. The Department of Public Enterprise certifies qualifying renewable energy projects and thereafter the Revenue Commissioners administer the tax relief. With the reduction in corporation tax over the last number of years, the benefits associated with this scheme have diminished. The tax relief scheme was extended in 2002 until December 2004.

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