Shannon tourism tax incentive

The deadline for applications for a special Mid-Shannon tax incentive scheme designed to promote tourism in this region has been extended. The move was introduced in legislation implementing the changes announced in April"s supplementary budget which was published on Thursday. IThe Shannon Corridor Scheme was introduced in 2007 to provide tax relief for expenditure on certain tourism facilities in the Mid-Shannon area. As originally introduced, projects had to formally apply by 31st May 2009 for approval and had to have a planning application submitted by then. Naturally in the current climate there has been little uptake of the scheme. The 31st May 09 deadline has been pushed out to 31st May 2010. In addition, the time frame in which the expenditure must be incurred has been extended to 31st May 2013. The scheme, designed to act as an incentive for both new development and refurbishment of tourism infrastructure in the Midlands in the counties of Clare, Galway, Tipperary, Offaly, Westmeath and Roscommon, applies to tourism buildings such as facilities for watersports, boat rental and inland cruising, health spas, equestrian and other cultural facilities. Commenting on the extension Jackie Masterson, Taxation Partner with Russell Brennan Keane said: 'While we have met with a number of parties interested in the Scheme, the 31 May 2009 deadline was proving prohibitive in the current climate - in this regard, the one year extension is very welcome. 'Successful applicants have the option of claiming the tax allowances themselves as a means of reducing their own tax bill annually or can use the incentive as a means of financing their project. However difficulties in attracting investors will still remain a challenge not only because of the banking crisis but also because the scheme still requires investors to be locked in for a 15-year period' said Jackie. The 15-year holding period did not change in the Finance Bill despite lobbying. There appears little the Minister could do in this regard without going back for EU approval. In Co. Westmeath the following District electoral divisions qualify under the scheme; Athlone East Rural, Athlone East Urban, Athlone West Urban, Ardnagragh, Auburn, Ballymore, Bellanalack, Carn, Castledaly, Doonis, Drumraney, Glassan, Killinure, Moate, Mount Temple, Moydrum, Muckanagh, Noughaval, Templepatrick, Tubbrit, Umma and Winetown. In South Roscommon, areas such as Hodson Bay, Cornafulla, Brideswell, Oldtown, Curraghboy, Athlone and Lecarrow are also listed.