Finance Act 2011

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Relief for energy efficient works.

13.— The Principal Act is amended by inserting the following after section 477:

“477A.— (1) In this section—

‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

‘approved contractor’ means a person who is a registered person and at the time of carrying out the qualifying work has—

(a) a tax clearance certificate issued under section 1095, or

(b) a certificate of authorisation issued under section 531;

‘Authority’ means the Sustainable Energy Authority of Ireland;

‘certificate of payment’, in relation to an individual, means a certificate issued by the Authority certifying that the individual has incurred qualifying expenditure and stating the amount of the qualifying expenditure so incurred;

‘qualifying expenditure’ means expenditure not exceeding the relevant limit incurred on qualifying work carried out by an approved contractor on a qualifying residence;

‘qualifying residence’ means a residential premises situated in the State in respect of which no rent is received or receivable by the individual making a claim under this section other than any rent that forms part of any relevant sums (within the meaning of section 216A) received by the individual in respect of that residential premises;

‘qualifying work’ shall be read in accordance with subsection (2);

‘registered person’ means a person who is registered with, and approved by, the Authority to carry out qualifying work;

‘relevant limit’, in relation to a year of assessment, means—

(a) €10,000 in the case of an individual assessed to tax in accordance with section 1016, or

(b) €15,000 in the case of individuals assessed to tax in accordance with section 1017,

subject in any case to a maximum amount of €15,000 in respect of which relief may be claimed under this section in respect of any one qualifying residence in the year of assessment concerned;

‘rent’ has the same meaning as in Chapter 8 of Part 4;

‘residential premises’ means a building or part of a building used solely or mainly as a dwelling;

‘tax reference number’ has the same meaning as in section 885.

(2) (a) In this subsection ‘energy-efficient works’ means works the purpose of which is to reduce the costs incurred in respect of heating a residential premises.

(b) The Authority shall keep and maintain and make available to the public a list of such energy-efficient works as are, from time to time, determined by the Minister for Finance, in consultation with the Minister for Communications, Energy and Natural Resources, to be energy-efficient works to which relief under this section applies (in this section referred to as ‘qualifying work’).

(3) (a) Where an individual, for the year of assessment 2011 or any subsequent year of assessment, on the making of a claim supported by a certificate of payment, proves that he or she made a payment to an approved contractor in respect of qualifying expenditure, the income tax to be charged on the claimant for that year of assessment, other than in accordance with section 16(2), shall be reduced by an amount which is the lesser of—

(i) the amount equal to the appropriate percentage of the qualifying expenditure,

(ii) the amount equal to the appropriate percentage of the relevant limit, and

(iii) the amount which reduces that income tax to nil.

(b) For the purpose of this section, in the case of an individual assessed to tax for a year of assessment in accordance with section 1017, any payment of qualifying expenditure to an approved contractor made by the individual’s spouse, in respect of which the individual’s spouse would have been entitled to relief under this section if that spouse were assessed to tax for the year of assessment in accordance with section 1016 (apart from subsection (2) of that section), shall be deemed to have been made by the individual.

(c) In all cases relief from income tax consequent on the allowance of qualifying expenditure under this section shall be given by means of repayment.

(4) The Authority shall not issue a certificate of payment in any case where the aggregate of all qualifying expenditure included on certificates of payment previously issued for the year of assessment concerned exceeds €150,000,000.

(5) Notwithstanding subsection (3), a payment to an approved contractor in respect of qualifying expenditure shall not be regarded as having been made in so far as any sum in respect of, or by reference to, the qualifying work to which it relates has been or is to be received directly or indirectly by the individual from the State, from any public or local authority, from any other person or under any contract of insurance or by way of compensation or otherwise.

(6) Notwithstanding subsection (3), where, on the basis of the information furnished to them under section 894A(2) or any other information in their possession, the Revenue Commissioners are satisfied as to the entitlement of an individual to relief under this section then, notwithstanding any other provision of the Income Tax Acts to the contrary, if the Revenue Commissioners consider it appropriate in the circumstances, the relief due may be given to the individual without the making and proving of a claim.

(7) Where relief is given under this section, no relief, deduction or credit under any other provision of the Income Tax Acts shall be given or allowed in respect of the qualifying expenditure.

(8) The following records shall be maintained by the Authority in respect of each individual to whom a certificate of payment is issued:

(a) his or her name and address;

(b) his or her Personal Public Service Number within the meaning of section 262 of the Social Welfare Consolidation Act 2005 ;

(c) the meter point reference number assigned in respect of the qualifying premises concerned;

(d) the amount of qualifying expenditure incurred;

(e) the year in which qualifying expenditure is incurred;

(f) the name and tax reference number of the approved contractor who carried out the qualifying work;

(g) proof that a payment or payments have been made to a qualifying contractor in respect of qualifying work.

(9) This section comes into operation on such day as the Minister for Finance may appoint by order.”.