Section 26 of the Finance Bill 2007 introduces a new pilot tax based scheme for tourism facilities in the mid-Shannon area. The scheme is aimed at encouraging the development of new tourism infrastructure, or the refurbishment of existing tourism infrastructure, in that area. The list of qualifying areas which are to be designated on a district electoral division basis is included in a new Schedule 8B to the Taxes Consolidation Act 1997 which is replicated below. The qualifying period for the scheme will be 3 years from the date of its commencement which will be done by way of Ministerial order. Relief will be available by way of accelerated capital allowances over 7 years for qualifying construction and refurbishment expenditure incurred in the qualifying period. In the case of refurbishment the qualifying expenditure must exceed 20 per cent of the market value of the property before work commences. In areas which are not in the BMW region only 80 per cent of construction and refurbishment expenditure will qualify for relief. The nature of the tourism infrastructure buildings and structures which may qualify under the scheme will be set out in guidelines to be issued by the Minister for Arts, Sport and Tourism in consultation with the Minister for Finance. While relief will be available over 7 years there will be a 15-year holding period in order to avoid a clawback of allowances given. Existing restrictions on the sideways set-off of excess capital allowances against non-rental income for passive investors will apply as will the restriction on the use of specified reliefs by high-income individuals which is effective from 1 January 2007.
Projects wishing to avail of relief must get approval in advance (for which an application must be made within 1 year of the commencement of the scheme) and also must get formal certification after completion. This approval and certification will be given by a special board established for the purposes of the scheme and will be carried out in accordance with the guidelines to be issued by the Minister for Arts, Sport and Tourism, in consultation with the Minister for Finance. Certain buildings such as those that facilitate gaming or gambling are specifically excluded from the scheme, as are licensed premises (but not restaurants). Accommodation facilities that are provided as part of a qualifying project may qualify for relief to the extent that expenditure on such facilities does not exceed 50 per cent of the overall expenditure on the project or such lower percentage as may be specified in the guidelines for the type of project involved. This is subject to the over-riding condition that qualifying expenditure on accommodation facilities may not exceed qualifying expenditure on non-accommodation facilities. The scheme will be notified to the European Commission under the new regional aid block exemption guidelines.
"SCHEDULE 8B
Section 372AW.
Description of Qualifying Mid-Shannon Areas
PART 1
Description of qualifying mid-Shannon areas of Clare
The District Electoral Divisions of Ayle, Ballynahinch, Boherglass, Caherhurley, Cappaghabaun, Carrowbaun, Cloonusker, Coolreagh, Corlea, Derrynagittagh, Drummaan, Fahymore, Feakle, Inishcaltra North, Inishcaltra South, Killaloe, Killokennedy, Killuran, Kilseily, Lackareagh, Loughea, Mountshannon, O'Briensbridge, Ogonnelloe and Scarriff.
PART 2
Description of qualifying mid-Shannon areas of Galway
The District Electoral Divisions of Abbeygormacan, Abbeyville, Ballinasloe Rural, Ballinasloe Urban, Ballyglass, Ballynagar, Bracklagh, Clonfert, Clontuskert, Coos, Derrew, Drumkeary, Drummin, Eyrecourt, Kellysgrove, Killimor (Portumna rural area), Kilmacshane, Kilmalinoge, Kilquain, Kiltormer, Kylemore, Laurencetown, Leitrim, Lismanny, Loughatorick, Marblehill, Meelick, Moat, Pallas, Portumna, Tiranascragh, Tynagh and Woodford.
PART 3
Description of qualifying mid-Shannon areas of Offaly
The District Electoral Divisions of Ballycumber, Banagher, Birr Rural, Birr Urban, Broughal, Cloghan, Clonmacnoise, Derryad, Doon, Drumcullen, Eglish, Ferbane, Gallen, Hinds, Hunston, Killyon, Lumcloon, Lusmagh, Mounterin, Moyclare, Shannonbridge, Shannonharbour, Srah and Tinamuck.
PART 4
Description of qualifying mid-Shannon areas of Roscommon
The District Electoral Divisions of Athleague East, Athleague West, Athlone West Rural, Ballydangan, Ballynamona, Castlesampson, Caltragh, Cams, Carnagh, Carrowreagh, Cloonburren, Cloonown, Crannagh, Creagh, Culliagh, Drumlosh, Dysart, Fuerty, Kilcar, Kiltoom, Lackan, Lecarrow, Lismaha, Moore, Mote, Rockhill, Roscommon Rural, Roscommon Urban, Scregg, Taghmaconnell, Thomastown and Turrock.
PART 5
Description of qualifying mid-Shannon areas of Tipperary
The District Electoral Divisions of Aglishcloghane, Ardcrony, Ballina, Ballingarry (in Borrisokane rural area), Ballygibbon, Ballylusky, Ballymackey, Ballynaclogh, Birdhill, Borrisokane, Burgesbeg, Carrig, Carrigatogher, Castletown, Cloghprior, Clohaskin, Cloghjordan, Derrycastle, Finnoe, Graigue (in Borrisokane rural area), Greenhall, Kilbarron, Kilcomenty, Killoscully, Kilkeary, Kilmore, Kilnarath, Knigh, Lackagh, Lorrha East, Lorrha West, Mertonhall, Monsea, Nenagh East Urban, Nenagh Rural, Nenagh West Urban, Newport, Rathcabban, Redwood, Riverstown, Terryglass, Uskane and Youghalarra.
PART 6
Description of qualifying mid-Shannon areas of Westmeath
The District Electoral Divisions of Athlone East Rural, Athlone East Urban, Athlone West Urban, Ardnagragh, Auburn, Ballymore, Bellanalack, Carn, Castledaly, Doonis, Drumraney, Glassan, Killinure, Moate, Mount Temple, Moydrum, Muckanagh, Noughaval, Templepatrick, Tubbrit, Umma and Winetown."