In 2018, the most recent year for which data are available, the Exchequer cost of the Employment Investment Incentive (EII) was €14.5m and 1,137 persons availed of the relief. The €14.5m cost represents less than half the equivalent cost figure for 2016 (€31.7m).
Revenue has advised me that it is not possible to identify the number of additional jobs created or supported by the EII.
A statistical report on the Employment and Investment Incentive (EII) is available on the Revenue website at link:
www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/eii. aspx
In addition, annual cost and user statistics can be found at the following link:
www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/eii. aspx
In relation to value for money, and as the Deputy may be aware, in 2018 I commissioned Indecon Economic Consultants to carry out a review which included an examination of the impact and cost effectiveness of EII (including the possibility of deadweight). The report is available at the following link:
www.gov.ie/en/publication/10b64f-indecon-evaluation-of-eii-and-sure/ .
The review noted that reliefs such as this are available in many of our competitor jurisdictions. It also found strong overall growth in employment of firms who received EII. It also concluded that the EII "should continue to be provided in order to facilitate funding for Irish based SMEs and start-ups".
Finally, I should point out that as an income tax based measure, EII relief is only available to individuals liable for income tax and not to institutional investors. This position will not change under the modifications to the scheme that I am introducing in Finance Bill 2021.
