Budget 2009 – the green agenda
From the Deloitte Commentary on the Budget yesterday:
Carbon Levy
The Minister confirmed that the Commission for Taxation has been asked to examine how the introduction of a carbon levy might best be structured and implemented to ensure that Ireland’s economic prospects are protected and the vulnerable in society do not lose out. A firm measure is expected in next year’s budget.
The fact that the Minister is examining the matter in detail and awaiting a more rounded picture of the impact of the introduction of such a levy is commendable and it would be hoped that he would take on board the views of the Commission and other industry bodies before making a final decision next year.
Energy Efficient Equipment
Finance Act 2008 introduced 100% accelerated capital allowances for companies who purchased specific energy efficient equipment. These included Building Energy Management Systems, Lighting and Lighting controls, and Motors and Variable Speed Drives. Budget 2009 extended the accelerated capital allowance regime to include four new categories. These new categories are:
• Data server related systems and large energy saving office equipment associated with Information and Communications Technology
• Efficient heating/electricity provision equipment and control systems
• Efficient electrical and control equipment associated with process and heating ventilation and air-conditioning systems
• Alternative fuel vehicles
Any relief for business which commits to the Green Agenda is to be welcomed, particularly in current times when fuel and utility costs are at historically high levels and driving hidden inflation and additional cash outlay for business.
Source: http://www.deloittebudget.ie/
Of particular interest to me is that ‘Data Server related systems’ are now covered under this new measure, allowing for 100% capital allowance right off. For us, it means we could potentially right off our blade/san/virtualisation investments over 1 year, as opposed to the typical 3. It will be interesting to see how this, and the ’spectre’ of the expected Carbon levy next year influence IT spend in the coming months.
Our Cloud Platform already has impeccable green credentials, consuming a tiny fraction of the power of traditional servers and needing even less cooling.
I predict a gradual but accelerating move to virtualisation and cloud technologies, both onsite and outsourced, with more and more companys outsourcing entire IT functions as the costs of refit, refresh and staffing are compounded by carbon levys and penalties on inefficiencies.