Dáil Éireann Debate, Wednesday - 16 October 2019
85. Deputy Robert Troy asked the Minister for Finance the details of an updated cost of adapting the employment and investment incentive scheme following the changes announced in budget 2020 (details supplied) according to the new income tax relief rate and investment limit introduced in tabular form. [42370/19]
Amharc ar fhreagraI understand that the Deputy is referring to the Budget 2020 change to increase the annual investment limit for the Employment and Investment Incentive (EII) from €150,000 to €250,000. I am advised by Revenue that, taking that proposed change into account, the estimated cost to the Exchequer of increasing the annual investment limit to the amounts indicated by the Deputy is set out in the following table.
|
Proposed New Threshold |
Tax Cost €m |
|
€300,000 |
0.13 |
|
€400,000 |
0.25 |
|
€500,000 |
0.37 |
|
€600,000 |
0.49 |
|
€700,000 |
0.61 |
|
€800,000 |
0.70 |
|
€900,000 |
0.78 |
|
€1m |
0.86 |
|
€1.1m |
0.94 |
|
€1.2m |
1.02 |
|
€1.3m |
1.10 |
|
€1.4m |
1.18 |
|
€1.5m |
1.26 |
|
€1.6m |
1.34 |
|
€1.7m |
1.42 |
|
€1.8m |
1.50 |
|
€1.9m |
1.58 |
|
€2m |
1.66 |
The estimates in the table are based on actual 2017 investments and assume there are no behavioural changes resulting from the increased cap on the relief.
