Derek McDowell
Question:76 Mr. McDowell asked the Minister for Finance the extent of the take-up of the tax incentives introduced to encourage park and ride facilities; and if he will make a statement on the matter. [24699/99]
Written Answers. - Park and Ride Facilities.
Section 70 of the Finance Act, 1999 introduced capital allowances of up to 100 per cent for capital expenditure on the construction or refurbishment of park and ride developments in or near designated urban areas which provide parking facilities for commuters using public transport.
Relief is also available for expenditure on the construction or refurbishment of related residential developments which are located at park and ride facilities. The allowances for residential developments are subject to the following limits. Total expenditure on residential developments must not exceed 25 per cent of total allowable expenditure at a qualifying park and ride facility. The scheme will operate for three years from 1 July 1999.
Guidelines on the operation of this scheme have been issued by my colleague, Mr. Noel Dempsey, Minister for Environment and Local Government, in August of this year. These guidelines set out the criteria which must be met in order to qualify for a development under the scheme. Certification of a development for the purposes of obtaining relief under the scheme is carried out by the relevant local authority.
The 1999 Finance Act also provided for capital allowances for commercial developments located at these park and ride facilities. However, guide lines are not yet available in relation to the commercial development element of these park and ride facilities as this will need approval by the EU Commission which will take some months.
I am advised by the Revenue Commissioners that claims for tax reliefs for the provision of park and ride facilities and for certain related developments are made by an investor on the annual tax return form. The amount of relief claimed is included in the section of the return form where claims for relief under other property based incentive schemes – the urban renewal scheme – are also made. However, as the various claims for relief are not separately identified, it is not possible to establish the level of take up under the park and ride scheme.
I am however, informed by the Department of the Environment and Local Government that the relevant local authorities must issue a certificate to developers in respect of qualifying park and ride facilities. In this context it may be possible to ascertain the level of take up of these incentives. While it is too early at this stage to provide any hard data, I understand that some private developers have expressed interest in these incentives.