Revenue eBrief No. 016/24

11 January 2024

Exemption of Certain Profits of Microgeneration of Electricity

Tax and Duty Manual 07-01-44 provides guidance on the income tax exemption of certain profits from the microgeneration of electricity by an individual at his or her sole or main residence. This manual has been updated to reflect amendments made in Finance (No.2) Act 2023.

Section 216D of the Taxes Consolidation Act 1997 provides for an exemption from income tax, Universal Social Charge and Pay Related Social Insurance for certain profits arising to a qualifying individual from the microgeneration of electricity.

For tax years 2022 and 2023 the exempt amount is €200. Finance (No.2) Act 2023 increased the exempt amount to €400 and extended the scheme to 31 December 2025. There is no requirement for individuals to include the exempt profits in an income tax return. However, where the annual profit is in excess of the exempt amount, that excess must be declared and will be subject to income tax, USC and PRSI in the usual manner.