Dáil Éireann Debate, Tuesday - 28 April 2026
414. Deputy Tony McCormack asked the Tánaiste and Minister for Finance if he will consider making near-neighbour community benefit payments arising from onshore wind farm developments exempt from income tax; and if he will make a statement on the matter. [29999/26]
View answerI understand the Deputy is referring to payments from Community Benefit Funds established by renewable energy projects supported under the Renewable Electricity Support Scheme (RESS).
In May 2025, the Department of Climate, Energy and Environment published a rulebook establishing the rules governing the operation of the Community Benefit Funds. A copy of this document is available at:[https://assets.gov.ie/static/documents/Rulebook_for_CBFs_under_RESS_branded.pdf] .
Under the RESS terms and conditions, annual payments from a Community Benefit Fund of between €500 and €1,000 are mandated to be made to each household within a distance of 2km to a turbine on an annual basis (the amount depends on the proximity of the household to a turbine).
The annual Community Benefit Fund payments are a form of income. Income is generally taxable in the hands of the recipient except where specifically exempted by tax legislation. There is no specific tax exemption for payments received from a Community Benefit Fund.
I have been advised by Revenue that such annual payments will generally be chargeable to tax under Schedule IV of Case D. The payment may also be subject to PRSI and the USC, depending on the recipient’s circumstances.
If an individual receiving the payment is a chargeable person, broadly speaking, someone with self-employment income, the payment should be declared on the Form 11 Income Tax return and the appropriate tax paid. If the receipt of this income makes a person chargeable for the purposes of the Income Tax Acts – that is, if the non-PAYE income of the person for the tax year, including the Community Benefit Fund payment, is in excess of €5,000 - the person will be required to register for self-assessment, file a Form 11 and pay any tax due online in advance of the return due date for the tax year.
If the person receiving the payment is not a chargeable person and their total non-PAYE income, including the Community Benefit Fund payment, is below €5,000, the income can be declared online via myAccount by signing in, selecting the relevant tax year, requesting a Statement of Liability, completing the Income Tax Return, and adding the relevant income under the Non-PAYE income section.
As the Deputy will appreciate decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to available resources and the sound management of the public finances.
