Vol. 525 No. 1
51 Mr. Higgins (Mayo) asked the Minister for Finance if he will consider giving tax relief for a person living in the vicinity of a wind farm, to invest in such a wind farm, on the same basis as existing tax relief for corporate investment in wind energy farms; and if he will make a statement on the matter. [19257/00]
In 1998 I introduced a scheme for tax relief for corporate investment in certain renewable energy projects. To qualify for the relief the energy project must be in the solar, wind, hydro or biomass technology categories, and be approved by the Minister for Public Enterprise. The relief takes the form of a deduction for tax purposes from a company's profits for an investment in new ordinary shares in a company setting up a renewable energy project. The relief is capped at 50% of all capital expenditure (excluding land), net of grants, or £7WP extended char 4,17 million for a single project, whichever is the lesser. Investment by a company or group is capped at £10 million per annum, and unless the shares are held for at least 5 years by the company the relief will be withdrawn.
Following clearance of the scheme by the European Commission, I made an order providing that the relief would come into operation from 18 March 1999 for a three year period.
While this relief was designed for a corporate structure, individuals can also invest through a limited partnership structure. However, in regard to such limited partnerships, in general, in the Finance Act, 2000, I had to close-off an abuse of the availability of the relief to individuals involved in a partnership structure. Closing off this abuse restricts the application of the relief to non-active partners in such partnerships. I would like to point out that in the case of such partnerships investment in renewal energy, transitional arrangements were provided for, which allow for expenditure incurred under an obligation entered into before 1 March 2001 to be excluded for this restriction. These transitional arrangements are generous. On this basis until the existing three year scheme for corporate investment has elapsed, I do not intend broadening this relief.
