The Minister for Finance Brian Lenihan has announced that there will be a new tax incentive for energy-efficient homes and businesses and that the hybrid car vehicle registration tax (VRT) relief scheme will remain in place until 2012, in his delivery of the harsh Budget 2011.
“Introduction of new scheme to encourage individuals to make their homes more energy efficient – relief to be given up to a maximum expenditure of €10,000 at the standard rate of income tax. Credit will be given in the following tax year.”
The minister also announced there will be an extension of the car scrappage scheme that will extend to June 2012.
The relief on (VRT) for hybrid vehicles and flexible fuel vehicles will be extended to 2012.
“The VRT relief for series production hybrid and flexible fuel vehicles, due to expire on 31 December 2010, is being extended for two years until 31 December 2012, with the rate of relief provided being up to €1,500,” it says in Budget 2011.
Energy efficient equipment also saw capital allowances extended.
“The scheme of accelerated capital allowances for expenditure by companies on certain energy-efficient equipment is being extended for a further three years to end- 2014.”
The Minister made the announcement during his delivery of the specifics of Budget 2011, which pulled no punches and saw a broad range of taxes and cutbacks imposed on the Irish public.