Farmers – Get the full tax benefit of Farm Waste Management

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There is a special Capital Allowances Scheme for work on farm buildings and structures associated with pollution control where the work is carried out before 31st December 2010. There is an accelerated allowance in Year 1 of the lesser of €50,000 or 50% of the qualifying expenditure. This Year 1 allowance is regarded as a “floating allowance” which may be taken in whole or in part at any time over the writing down period. The balance of the expenditure is written off over 3 years (33% per annum) where the expenditure is incurred on or after 1st January 2005 (prior to that date over 7 years). The allowance is calculated on the expenditure nett of grants and vat refund/credit.

Conditions to be satisfied

  1. Work must be carried out prior to 31st December 2010.
  2. A Farm Nutrient Management Plan must be drawn up by an agency or planner approved by the Department of Agriculture, Food & Forestry.
  3. The plan must be delivered to the Department of Agriculture, Food & Forestry.
  4. The buildings and structures must be constructed in accordance with the Farm Nutrient Management Plan and certified as being necessary for the purpose of securing a reduction in or the elimination of any pollution arising from the trade of farming.
  5. The building must be in use before the claim is allowable.