Government to consider expanding the scope of the Employment Investment Incentive Scheme

The Irish Government to consider widening the scope of the Employment Investment Incentive (EII) scheme. Finance Minister Paschal Donohoe said the government’s move was aimed at providing better support to startups and enabling projects to attract capital from broader investors.

The Finance Minister said that since last month’s budget, stakeholders have proposed a range of initiatives aimed at broadening the scope and effectiveness of EII scheme. Such proposals include amending the eligibility standards of businesses to engage in renewable energy community projects under the Government’s Renewable Energy Support Scheme.

There are no specific restrictions under the scheme for companies engaging in solar activities. Hence a broad range of ventures are excluded, Mr. Donohoe said. This include professional services such as one-time trades, handling of goods, shares or other financial assets, dentistry, architecture, accountancy and legal services.

Meanwhile, the minister said he was unable to bring forward legislative proposals in the context of the Finance Bill 2020, given the complexity of a number of issues, including the need to ensure that state aid principles continue to be adhered to. However, he said in his budget speech that the department would evaluate how the project could be improved in the light of the current COVID-19 crisis.

“Preparations are already under way in this regard and next month it is proposed to launch a consultation process where stakeholders will be invited to submit their views and suggestions to the Department,” Mr. Donohoe added.

According to the Finance Minister, those proposals will encourage and provide better funding for start-ups, enable projects to raise capital from a wider range of investors and allow certain energy-related projects to fall within the scope of the scheme.