Tax relief for farm safety equipment welcomed

Galway Daily news €20.6 million in ANC payments issued to Galway farmers

The inclusion of tax relief for farmers buying essential farm safety equipment in the finance bill for tax provisions in budget 2021 has been welcomed.

Galway East TD Seán Canney said that including this tax incentive in the bill will help make farmers safe by offsetting the cost of purchasing essential upgrades.

“The farm is a very dangerous work environment and these measures will help farmers overcome the cost of providing essential safety equipment”.

Minister for Public Expenditure Paschal Donohoe added the “Acceleration of wear and tear allowances for farm safety equipment” amendment to the Finance Bill 2020 which is currently before the Dáil.

This scheme will incentivise farmers to purchase safety equipment by enabling 50% of the cost of certain equipment to be deducted from their tax bill.

This is an increase from the current capital allowance of 12.5% for farm equipment in general.

The equipment and upgrade works that qualify for tax relief under the scheme includes:

  • Hydraulic linkage arms mounted tractor jacking systems
  • Big bag lifter systems
  • Chemical storage cabinets
  • Animal anti-backing gates for cattle crush
  • Quick hitch mechanisms for tractors
  • Provision of access lift
  • Hoist or integrated ramp to farm vehicles and wheelchair restraints
  • Wheelchair docking station
  • Modified controls
  • Modified seating
  • Additional steps for easier access
  • Farm vehicle and machinery controls
  • Hydraulically controlled linkage arms

Almost 50% of workplace deaths occur in the agriculture, fishing and forestry sector Minister Donohue said, with 214 fatal accidents taking place on farms between 2010 and 2019.

This increased capital allowance should incentivise the purchase of new safety equipment, and the replacement of equipment that is old or outdated.

The scheme will have a cap of €5 million in equipment costs per annum, and will be administered by the Department of Agriculture, Food and the Marine.

“The measure is also designed to assist farmers who have a disability to continue work, with certain adaptive equipment also eligible for the scheme,” Minister Donohue said.