Section 285A Acceleration of wear and tear allowances for certain energy-efficient equipment
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Amendments
Section 285A inserted by Finance Act 2008 section 46(1)(a) from 9 October 2008 (appointed by the Minister of Finance under Finance Act 2008 (Commencement of Section 46) Order 2008 (SI 397/2008).
Capital Allowances for Energy-Efficient Equipment: Tax Briefing Issue 70 - 2008
(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.
What wear and tear allowances can be given for energy-efficient equipment?
(1)-(2) Capital expenditure in the relevant period on energy-efficient equipment on the specified list and which have been certified by the Minister for Communications, Energy and Natural Resources, qualifies for 100% first year allowances. This is s...
(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.
(8A)(a) Notwithstanding Part 11C, where an allowance is increased under this section in respect of expenditure incurred in a chargeable period on the provision of any vehicle (being a vehicle to which subsection (1) of section 380K relates) in relation to the class of technology described in column (1) of the Table as "Electric and Alternative Fuel Vehicles", then subsection (2) shall apply as if the reference in paragraph (ad) of section 284(2) to the actual cost were a reference to the lower of the actual cost of the vehicle or the specified amount referred to in section 380K(4).
(b) Subsection (2) shall not apply where an allowance in respect of expenditure incurred on the provision of a vehicle referred to in paragraph (a) is made under section 284(2) as applied by section 380L.
Amendments
Subs (8A) inserted by Finance (No. 2) Act 2008 section 37(1)(a) from a day to be appointed by the Minister for Finance.
(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.
