Dáil Éireann Debate, Tuesday - 18 April 2023
390. Deputy Alan Kelly asked the Minister for Finance his views on an anomaly in the temporary business energy support scheme in which a charity that only qualified as a section 39 organisation cannot apply this year for support given it does not have a trading position and the inflation fund that was launched this year means it also loses out as it only got section 39 status this year (details supplied). [17254/23]
View answerThe Temporary Business Energy Support Scheme (TBESS) was introduced in Finance Act 2022 to support qualifying businesses with increases in their electricity or natural gas costs arising from the invasion of Ukraine by Russia.
The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 30 April 2023. However, subject to enactment of changes proposed in Finance Bill 2023, this period is to be extended to cover energy costs up to 31 May 2023. It is available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria.
A charity that carries on a trade, the profits or gains arising from which would be chargeable to tax under Case I of Schedule D, but for the exemption provided for section 208(2)(b) of the Taxes Consolidation Act 1997, will be regarded as an eligible business under the TBESS as regards that trading activity.
Where a charity is engaged in a number of activities, only some of which would be regarded as trading activities, then only the electricity and gas costs relevant to that activity may be eligible for support under the TBESS. Only metered gas and electricity costs incurred by the charity in respect of a location where the activities of a trade are carried on may be included in a claim under the scheme. This may require apportionment of costs between those activities that are trading in nature and those that are not.
Further details on TBESS and the relevant conditions for making a claim can be found at: www.revenue.ie/en/starting-a-business/tbess/index.aspx
