Wednesday, 23 October 2013

Questions (80)

Pearse Doherty

Question:

80. Deputy Pearse Doherty asked the Minister for Finance the measures announced in budget 2014 or in any previous budgets pending EU approval under state aid regulations, and their value individually and in total. [45000/13]

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Written answers (Question to Finance)

I assume the Deputy is referring to measures where such approval has yet to be obtained. In my Budget 2013 speech I announced a scheme of accelerated capital allowances entitled "Incentives for certain aviation services facilities". This was provided for in section 31 of Finance Act 2013. This scheme provides accelerated capital allowances for the construction and refurbishment of certain specialist buildings and structures for use in the maintenance, repair, overhaul or dismantling of commercial aircraft. This is subject to approval from the European Commission. When this approval is received, the section will be commenced. The estimated cost: is €26 million over 6 years. The extension of the Employment and Investment Incentive from 2013 to 2020 was also announced in Budget 2013, pending the receipt of the necessary approval from the European Commission. The estimated cost is €135 million over 7 years.

The living city initiative, announced in Finance Bill 2013, is a pilot project which provides certain tax incentives to make it more attractive for people live in historic and culturally significant city centre houses. The initiative also offers incentives for retailers and small businesses in those areas. Budget 2014 extended the living city initiative to include residential properties constructed up to the end of 1914 in designated areas, and extended it to other cities – Cork, Galway, Kilkenny and Dublin. This initiative is subject to EU State aid approval and a commencement order. The estimated value is €20 million per year.

The Finance Act 2013 introduced new provisions to ensure that Film Relief tax reliefs will accrue to the producers rather than investors and result in tax savings for the Exchequer. Budget 2014 extended the definition of 'eligible individual' to include non-EU talent, in conjunction with the introduction of a withholding tax. It is intended to commence this provision once EU State Aid approval has been given. The estimated value is €15 million per year.

A CGT incentive is being introduced by Budget 2014 and Finance (No 2) Bill 2013 to encourage entrepreneurs (in particular "serial" entrepreneurs) to invest and re-invest in assets used in new productive trading activities. Commencement of this measure is subject to receipt of EU State Aid approval. The estimated cost is €20 million by 2018. The stamp duty exemption for transfers of shares in companies listed on the Enterprise Securities Market (ESM) of the Irish Stock Exchange, announced in Budget 2014, may require EU State Aid approval. The estimated cost of this measure is €5 million in a full year.