Éire / Ireland

In Budget 2024, the Minister for Finance, Michael McGrath, has introduced several climate-related tax measures to promote sustainability and energy efficiency. These measures encompass various aspects of green initiatives, from incentivizing micro-generation of electricity to supporting the adoption of electric vehicles.

  • Accelerated Capital Allowances Scheme:

    • Extended for two more years to promote the use of energy-efficient equipment.
  • Micro-generation of Electricity:

    • Tax disregard doubled for households selling surplus electricity back to the grid.
    • An income disregard of up to €400/year introduced from January 1, 2024, providing relief from income tax, USC, and PRSI.
  • Solar Panels:

    • VAT rate reduction to zero for private dwellings extended to schools starting January 1, 2024.
  • Battery Electric Vehicles (BEVs):

    • VRT relief extended until the end of 2025, benefiting BEVs valued up to €50,000.
  • Carbon Tax Increase:

    • CO2 emission rate for petrol and diesel raised from €48.50 to €56.00/tonne from October 11, aligning with the trajectory set in the Finance Act 2020.
    • All revenue generated will be allocated towards shielding vulnerable groups from unintended impacts of the tax hike, funding a socially progressive national retrofitting initiative, and providing support for farmers transitioning towards sustainable practices.
  • Residential and Community Energy Schemes:

    • Budget allocates a substantial €380 million to these schemes, aiming to reduce greenhouse gas emissions and lower energy costs.
  • Renewable Energy Target:

    • The budget allocates resources to support the goal of meeting 80% of Irish electricity needs from renewable sources by 2030.
  • Low-Interest Loan Scheme:

    • Introduced alongside Sustainable Energy Authority of Ireland grants, facilitating broader access to energy-saving opportunities.
  • Carbon Tax Revenue Allocation:

    • An additional €165 million from Carbon Tax revenues will be available in 2024 to support a just transition and address fuel poverty.
    • Total available for investment reaches €788 million, with almost half (€380 million) dedicated to enhancing home energy efficiency.
  • Social Protection and Agriculture Funding:

    • €262 million from Carbon Tax revenue directed towards Social Protection.
    • An extra €32 million allocated to the Department of Agriculture, Food, and the Marine to assist up to 50,000 farmers in improving biodiversity, climate, air, and water quality outcomes.

Read More: https://www.rte.ie/news/environment/2023/1010/1409959-budget-climate-environment/

GOV.IE Guide: https://www.gov.ie/en/publication/a93a4-your-guide-to-budget-2024/