Dáil Éireann Debate, Tuesday - 11 May 2021
231. Deputy Kathleen Funchion asked the Minister for Finance his plans to implement a tax incentive to support the purchase of capital equipment and investment in the manufacturing sector (details supplied). [24183/21]
View answerThe Deputy will be aware that a company may claim capital allowances on capital expenditure it incurs on certain types of business assets and business premises. Capital allowances are generally calculated on the net cost of the business asset. There are different rates available depending on the type of asset such as on plant and machinery, motor vehicles, industrial buildings, transmission capacity rights, computer software, specified intangible assets.
A company can claim capital allowances at a rate of 12.5% over eight years for plant and machinery. However, a company can claim an Accelerated Capital Allowance (ACA) of 100% in the first year the asset is used in the business for the following:
- Energy efficient equipment including electric and alternative fuel vehicles;
- Gas vehicles and refuelling equipment;
- Equipment in a creche or gym provided by the company to its employees.
Additional information is available on the Revenue website.
