Michael Ring
Question:92 Mr. Ring asked the Minister for Finance if he will introduce a tax incentive to encourage people to invest in windfarms; and if he will make a statement on the matter. [10295/00]
Vol. 517 No. 5
92 Mr. Ring asked the Minister for Finance if he will introduce a tax incentive to encourage people to invest in windfarms; and if he will make a statement on the matter. [10295/00]
Section 62 of the Finance Act 1998 provides for tax relief for corporate investment in certain renewable energy projects. To qualify for the relief the energy project must be in the solar, wind, hydro or biomass technology categories, and be approved by the Minister for Public Enterprise. The relief takes the form of a deduction for tax purposes from a company's profits for an investment in new ordinary shares in a company setting up a renewable energy project. The relief is capped at 50% of all capital expenditure, excluding land, net of grants, or £7.5 million for a single project. Investment by a company or group is capped at £10 million per annum, and unless the shares are held for at least five years by the company the relief will be withdrawn.