216D Certain profits of micro-generation of electricity

Summary

This section provides for an exemption of up to €200 from income tax, USC and PRSI for certain profits arising to a qualifying individual who generates energy from renewable, sustainable or alternative energy sources for their own consumption. The profits which are exempted are those profits arising from the domestic generation of electricity which is supplied to the grid.

Details

Definitions

(1) “Act of 1999” means the Electricity Regulation Act 1999.

“micro-generation of electricity” means the use of renewable, sustainable or alternative forms of energy to generate electricity at a qualifying residence.

“qualifying person” means an individual who purchases electricity for own use. In effect, this means the individual or individuals named on the electricity bill for the premises in question.

“qualifying residence” means a residential premise (to include any garden or grounds) located in the State which is occupied by an individual as his or her sole or main residence during the year of assessment concerned.

“residential premises” means a building or part of a building used as a dwelling.

“renewable, sustainable or alternative forms of energy” has the same meaning as in the Act of 1999.

“relevant period” means the period commencing on 1 January 2022 and ending on 31 December 2024.

Exemption

(2) The exemption provided for in subsection (3) applies to profits (chargeable to tax under Case IV) arising to an individual from the generation of electricity from renewable, sustainable or alternative sources of energy at the individual’s sole or main residence (referred to as the micro-generation of electricity) during the period 1 January 2022 to 31 December 2024. To qualify for the exemption the individual (or individuals) must be named on the electricity bill for the premise in question.

(3) Where, in a year of assessment, profits arise to an individual from the micro-generation of electricity this subsection provides that up to €200 of those profits are exempt from Income Tax, USC and PRSI. The €200 exemption applies to each individual named on the electricity bill i.e. it is not divided between them.

Relevant Date: Finance Act 2021