Accelerated Captial Allowance Scheme Assists keepITsafe to Slash Costs

The Accelerated Capital Allowance scheme, which is administered by the SEAI, allows companies to buy energy efficient equipment and write off its full cost against corporation tax in the year of purchase. Through this scheme keepITsafe, Ireland’s largest online backup company, purchased Eur80,000 of energy efficient servers, reducing the company’s annual data centre running costs by 30%.

“The Accelerated Capital Allowance Scheme acts as an important incentive to companies such as keepITsafe to invest in energy efficient equipment. It allows companies to move towards implementing more energy efficient practices and more importantly save money,” says Eoin Blacklock, managing director of keepITsafe.

Eamon Ryan TD, Minister for Communications, Energy and Natural Resources, with Eoin Blacklock, managing director, keepITsafe.

Welcoming keepITsafe’s successful participation in the Scheme, Energy Minister Eamon Ryan TD comments: “The ACA Scheme is designed to allow businesses to reduce costs and increase their energy efficiency. keepITsafe has shown that significant savings can be made – €80,000 in this case. Not only are they reducing their costs, but their whole business operation now runs more efficiently.”

The scheme is quickly gathering momentum among the Irish business community. With many companies facing cost reduction and competitiveness challenges at the moment, the manner in which it operates should assist. There is a cash-flow benefit for companies, who can claim the full cost upfront, rather than over eight years as was previously the case.

The ACA is a tax incentive for companies paying corporation tax and aims to encourage investment in energy efficient equipment. The ACA offers an attractive incentive whereby it allows companies to write off 100% of the purchase cost of qualifying energy efficient equipment in the year of purchase.

All Irish businesses can receive tax relief on equipment such as:

* Refrigeration and cooling systems

* Catering and hospitality equipment

* Electro-mechanical systems

* IT software and hardware

* Lighting

* Electric vehicles.

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