Jim O'Keeffe
Ceist:113 Mr. J. O'Keeffe asked the Minister for Finance his proposals to introduce new tax instruments to promote investment in the development of renewable energy. [21215/02]
Written Answers. - Tax Incentives.
Section 62 of the Finance Act, 1998, section 486B of the Taxes Consolidation Act – introduced a new relief for corporate investment in certain renewable energy projects. It was necessary to obtain EU Commission approval for the relief, which took about a year. The relief then commenced on 18 March 1999 and was due to end last March 2002. However, I extended the relief in Finance Act, 2002, until 31 December 2004, subject to EU Commission approval.
In the programme for Government, which covers a five year period, it states that we will improve the tax incentives for investment in renewable energy. However, any new tax incentives have to be considered in the context of the budgetary and economic policy provisions in the programme for Government, in particular, the reference to "responsible fiscal policy" and the need to "keep the public finances in a healthy condition". Recent developments have emphasised the importance of this public finance constraint.
In accordance with precedent, I do not propose to comment one way or the other on the matter raised by the Deputy, given that the budget is due in three weeks' time.