Income Tax Act 2007 section 198B

Excluded activities: subsidised generation of heat and subsidised production of gas or fuel

Section 198B excludes certain heat generation and gas or fuel production activities from qualifying where they benefit from renewable heat incentive subsidies or similar overseas support schemes.

• The generation of heat is an excluded activity if it attracts a payment or other incentive under the Renewable Heat Incentive (RHI) scheme.
• The production of gas or fuel is similarly excluded if it benefits from a payment or incentive under the RHI scheme.
• The exclusion also applies where the generation of heat or production of gas or fuel attracts support under a comparable overseas scheme similar to the RHI.
• The effect of this exclusion is that these subsidised activities cannot qualify for the relevant tax relief, preventing a double benefit from both the subsidy and the tax incentive.