Finance Act 2008

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Acceleration of wear and tear allowances for certain energy-efficient equipment.

46.— (1) The Principal Act is amended—

(a) by inserting the following section after section 285:

“285A.— (1) In this section—

‘ energy-efficient equipment ’ means equipment, named on and complying with the criteria stated on the specified list, provided for the purposes of a trade and which at the time it is so provided is unused and not second-hand;

‘ relevant period ’ means the period commencing on the date on which the first order is made under subsection (4) and ending 3 years after that date;

‘ the specified list ’ means the list of energy-efficient equipment which—

(a) complies with subsections (3) and (4), and

(b) is maintained for the purposes of this section by Sustainable Energy Ireland — The Sustainable Energy Authority of Ireland;

‘ Table ’ means the Table in Schedule 4A.

(2) Subject to this section, where for any chargeable period a wear and tear allowance is to be made under section 284 to a company which has incurred capital expenditure on the provision of energy-efficient equipment for the purposes of a trade carried on by that company, section 284(2) shall apply as if the reference in paragraph (ad) of that section to 12.5 per cent were a reference to 100 per cent.

(3) The specified list shall contain only such equipment that—

(a) is in a class of technology specified in column (1) of the Table, and

(b) is of a description for that class of technology specified in column (2) of the Table.

(4) For the purposes of this section, the Minister for Communications, Energy and Natural Resources, after consultation with and the approval of the Minister for Finance—

(a) shall by order make the specified list—

(i) stating the energy efficiency criteria to be met for, and

(ii) naming the eligible products in,

each class of technology specified in column (1) of the Table, and

(b) may by order amend the specified list—

(i) stating energy efficiency criteria to be met for, or

(ii) naming eligible products in,

any class of technology specified in column (1) of the Table.

(5) Subsection (2) shall not apply—

(a) where the person to whom the allowance is to be made in accordance with section 284 is not a company, or

(b) where the energy-efficient equipment is leased, let or hired to any person.

(6) Subsection (2) shall not apply in respect of expenditure incurred in a chargeable period on the provision of energy-efficient equipment in relation to a class of technology where the amount of that expenditure is less than the minimum amount specified in column (3) of the Table in relation to that class of technology.

(7) (a) Subsection (2) shall not apply in respect of expenditure incurred on the provision of equipment where that expenditure is not incurred in the relevant period.

(b) Where—

(i) expenditure on equipment is incurred on or after 31 January 2008 but before the first order is made under subsection (4), and

(ii) that equipment would have qualified as energy-efficient equipment under this section had such an order been made at the time the expenditure was incurred,

then this section shall apply as if the order had been made at that time.

(8) Where this section applies to capital expenditure incurred by a company on the provision of energy-efficient equipment and that equipment would not, apart from this section, be treated as machinery or plant, then that equipment shall be treated as machinery or plant for the purposes of this Chapter and Chapter 4 of this Part.

(9) Any order made by the Minister for Communications, Energy and Natural Resources for the purpose of this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”,

and

(b) by inserting the following after Schedule 4:

“SCHEDULE 4A

TABLE

.”.

(2) Subsection (1) comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.