Dáil Éireann Debate, Tuesday - 20 March 2018
59. Deputy Niall Collins asked the Minister for Finance if he will provide an overview of the accelerated capital allowance scheme for crèches and gyms as published in the Action Plan for Jobs 2018 that has been submitted to the European Commission for state aid approval. [12736/18]
Amharc ar fhreagraFinance Act 2017 introduced a scheme of accelerated capital allowances for the construction of buildings and structures for use in the provision of childcare services or fitness centre facilities by employers to employees. The scheme also provides relief for expenditure incurred on related equipment.
The rationale for introducing the relief is to help tackle the cost and availability of childcare facilities, both of which have been cited as barriers to work. The measures will also support the Government’s vision for a healthy Ireland by supporting the provision of fitness facilities by employers.
The tax relief will not commence immediately as approval of the European Commission from a State Aid perspective is required, on foot of which the scheme will commence by Ministerial Order.
The relief will work in a similar fashion to other capital allowances. The accelerated allowances for buildings or structures will apply at the rate of 15% per annum for 6 years and 10% in year 7 in respect of qualifying expenditure. The wear and tear allowances for related equipment are at an accelerated rate of 100%.
The relief is only available to employers who incur qualifying expenditure, meaning that, unlike in the past, passive investors cannot avail of relief under the scheme. Where the employer is a company, employees of other companies connected with that company may avail of the services/facilities.
