Shannon incentives:Minister for Finance Brian Cowen unveiled a significant tax-based package in the Finance Bill aimed at encouraging the development of tourism infrastructure in the mid-Shannon area.
The qualifying period for expenditure under the scheme will be three years from the date of its commencement. The tax relief will consist of accelerated capital allowances over seven years for qualifying construction and refurbishment expenditure incurred in the qualifying three-year period.
However, it will not cover stand alone hotel or holiday cottage developments and the accommodation content of any qualifying development cannot be more than 50 per cent. A certification body will be established to vet proposed developments to provide quality assurance for the scheme.
The designated areas involved are in a corridor of about 12km (seven-and-a-half miles) on either side of the Shannon stretching from roughly the bottom of Lough Derg to Lough Ree.
The decision to create the new tax-designated zone, will offer tax breaks for those developing tourism facilities in towns and villages in Westmeath, Tipperary, Roscommon and Mr Cowen's own county of Offaly.
The Department of Finance released a list of the names of the towns and villages that will benefit from the scheme, though it stressed that the list is "not exhaustive".
In Westmeath, the areas chosen include Tang, The Pigeons, Glasson, Ballykieran, Ballymore and Mount Temple, while in Offaly, Birr, Ferbane, Shannonbridge, Cloghan, Shannon Harbour, Banagher and Bellmount will gain.
In north Tipperary, the chosen places are Nenagh, Borrisokane, Ballina, Rathcabbin, Lorrha, Carrigatogher, Terryglass, Aglish, Coolbaun, Ardcroney, Pukaun, Ballycommon, Portroe, Newtown, Birdhill and Newport.
In Roscommon, Athlone, Leecarrow, Rahara, Brideswell, Curraghboy, Hodson Bay, Cornafulla, Cloonfad and Oldtown will gain, while, in Galway the areas are: Ballinasloe, Clonfert, Eyrecourt, Cillimor, Ballyshrule, Abbey, Tynagh, Powerscross, Woodford and Gorteeny. In Clare, Killaloe, Scarriff, Feakle, Whitegate, Mountshannon, Caher, Flagmount, Bodyke, Broadford, Kilbane, Bridgetown and O'Briensbridge have been selected, the department said.
The scheme is subject to notification to the European Commission under the new regional aid block exemption guidelines.
