Section 50 of the Finance Act 2004 provides for the introduction of a scheme for excise tax relief for biofuels. The purpose of the scheme is to allow qualified and conditional relief from excise of biofuel used in approved pilot projects for either the production of biofuel or the testing of the technical viability of biofuel for use as a motor fuel.
A scheme, which includes pure plant oil, biodiesel and bioethanol, has been drawn up in conjunction with the Department of Communication, Marine and Natural Resources. The European Commission has confirmed that the scheme would represent a State aid and consequently its approval is required.
Following meetings between the Department of Finance, the Department of Communications, Marine and Natural Resources and the European Commission, and subsequent clarifications requested by the Commission, a formal application to the Commission was submitted in January. I understand that a decision from the Commission is now imminent. Assuming approval is granted, the necessary commencement order will be signed and the Department of Communications, Marine and Natural Resources will set in train the formal process of inviting proposals for the approved scheme.