Accelerated capital allowances for farm safety equipment

Nov 30, 2020

The Minister for Finance, Paschal Donohoe TD, confirmed that Report Stage Amendments to Finance Bill 2020 will include accelerated capital allowances for farm safety equipment. The proposed new scheme will provide accelerated capital allowances of 50 percent per annum over two years for certain eligible equipment, subject to an annual total equipment cost of €5 million per annum, excluding VAT. Currently, capital allowances are available at 12.5 percent per annum over eight years for agricultural equipment.

The measure is in response the high level of workplace fatalities in the agriculture, fishing and forestry sector. The amendment changes the capital allowance treatment of certain farm safety equipment, and adaptive equipment for farmers with disabilities.

Examples of items expected to be eligible equipment within the proposed new scheme include:

  • Hydraulic linkage arms mounted tractor jacking systems.
  • Big bag (equal to or greater than 500kg) lifter, with or without integral bag cutting system.
  • Chemical Storage cabinets.
  • Quick hitch mechanism for rear and front three-point linkage to enable hitching of implements without need to descend from tractor.
  • Provision of access lift, hoist or integrated ramp to farm vehicle, including modified entry when required.
  • Wheelchair restraints.
  • Wheelchair docking station.
  • Modified controls to enable full hand operation of a farm vehicle.
  • Additional steps to farm vehicle or machinery to provide easier access.
  • Modified farm vehicle or machinery controls to enable control by hand or foot.
  • Hydraulically located lower three-point linkage arms.

It is intended that the Department of Agriculture, Food and the Marine (DAFM) will issue a Farm Safety/Adaptation Accelerated Capital Allowance Certificate for submission to Revenue to ensure that the €5million celling is not exceed.

The Minister for Agriculture, Food and the Marine, Charlie McConalogue, said:

“This proposal reflects how the Department of Agriculture is working with all arms of the government to drive change in relation to safety behaviour, while supporting those farmers who have suffered serious injury. 

The scheme will be administered by the Department of Agriculture, Food and the Marine. Further information can be found in the press release.