Kilberehert Windfarm EIIS Opportunity Profiled in the Sunday Busness Post

Kilberehert Windfarm scheme gears up for EIIS

Limerick-based accountancy and taxation advisory firm HLB McKeogh Gallagher Ryan is advising Metro Energy Ltd, the promoter of the Kilberehert wind farm Employment Investment Incentive Scheme (EIIS) opportunity.

The EIIS funds are to be used to part-fund the construction of a 4.799 megawatt wind farm located in the townland of Kilberehert, close to Charleville in Co Cork, at a projected cost of circa €11.55 million. The project comprises three turbines to be commissioned in autumn 2016.

Sunday Business Post profiles the Kilberehert Windfarm EIIS investment opportunity

Metro Energy Ltd is owned equally by Garvan and Kieran Healy. Kieran is the landowner of the site on which the Kilberehert Windfarm is to be constructed, a positive factor for the project.

Metro Energy Ltd has engaged a strong team of wind industry experts to provide consultancy advice, including Mullan Grid Consulting, Sgurr Energy and Beauchamps Solicitors.

Full planning permission for the project is in place and a 25-year lease agreement is in place between Metro Energy Ltd and Kieran Healy in relation to the site on which the turbines will be built. Options for land access agreements are in place with neighbouring landowners on the grid connection path.

A positive wind survey report from leading consultants Garrad Hassan Ireland Ltd (DNV GL) has led to a grid connection offer and there’s a fixed price contract agreed with  Enercon for turbine supply and electrical works.

This private placing will give higher rate taxpayers an opportunity to shelter a portion of their taxable income using EIIS relief. Investors can place up to €150,000 in the EIIS. Larger investment amounts could mean investors could shelter their entire taxable income with one investment.

Mary McKeogh, partner, HLB McKeogh Gallagher Ryan said, “The key attraction of EIIS relief is that it represents one of the few sources of total income relief available, it is relatively short term, and is based on a one-off decision which has an immediate impact.”

Under current tax legislation,  funds are required to be committed for a minimum of four years after the shares are issued but this period can be longer at the discretion of the company.

This is a five-year investment and it should be noted that with the Kilberehert Windfarm the investor’s exposure is limited to the up-front equity investment. The investor does not need to have recurring tax exposure.

The high-income earner restriction does not apply to EIIS investments, so tax relief may be claimed on the investment, up to a maximum of €150,000, without this restriction in the year of investment.”

Wind energy generation continues to be well supported by lending institutions in Ireland. Completed wind farms continue to be sold at strong prices and are expected to do so for the foreseeable future.

The promoter will issue regular updates to the investors throughout the life of the investment.

This article appeared in the print issue of the Sunday Business Post on 22 November 2015.