Irish Farmers Association Calls For Tax Breaks On Renewable Energy

by Amanda Banks, Tax-News.com, London

10 October 2008

The Irish Farmers Association (IFA) has this week asked the government to consider allowing them a three-year tax break in order to allow them to increase renewable energy production by installing around 6,000 wind turbines throughout the country.

The proposal, put forward by the IFA's president, Padraig Walshe, would not only reduce the country's need to rely upon non-renewable energy sources and reduce greenhouse emissions, but also benefit the Irish economy by creating thousands of long-term jobs.

According to the IFA's calculations, it would cost between EUR30,000 - EUR60,000 to install each 15-kilowatt turbine.

Talking about the plans on the IFA's website this week, Mr Walshe added that building more renewable energy sources across the country would also be an effective way of helping the Irish government to achieve the targets they are committed to in this area over the coming years.

Walshe went on to explain:

“To encourage farmers to make the investment in micro energy generation on-farm, IFA is proposing that there should be double capital allowance tax relief up to a maximum investment of EUR50,000 per farmer in micro energy. Initially IFA is seeking this taxation relief on 6,000 installations over 3 years. Planning restrictions are delaying the roll-out of wind farms and other renewable energy generating projects. IFA is proposing a range of reforms in planning regulations for micro generation.”

The IFA president is also campaigning for more "micro" energy forms - such as solar and anaerobic methods of generating energy - to be introduced in the future, but says to make this possible, the government must rethink the way in which they are currently preventing this from happening, stating:

“The electricity load restrictions and connection difficulties are further barriers to alternative energy sources. To encourage the development of the micro industry and allow farmers a return on the investment, a special renewable energy feed–in tariff support for micro energy must be put in place, together with 'smart metering' technologies.”

Walshe has also insisted that should the government give the go-ahead, sufficient funding must be available to ensure the full development of any renewable energy source.

Tom Bean of Country Power commented:

“With our carbon emissions soaring and our continuing over dependence on imported fossil fuels, micro generation is a totally untapped potential for Ireland and is an opportunity to unlock huge economic and environmental benefits.”

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