The Sustainable Energy Authority of Ireland (SEAI) is currently inviting submissions from manufacturers and suppliers to the new Accelerated Capital Allowances (ACA) equipment categories announced by the Government as part of the Finance Act.
The ACA is a tax incentive for businesses to encourage investment in energy efficient equipment. Introduced in 2008, it offers an attractive incentive whereby companies are allowed to write off 100% of the purchase value of qualifying equipment in the year of purchase.
The 20 new technologies which fall under three different equipment categories included in the Scheme are:
- Refrigeration and Cooling Systems
- Electro-mechanical Systems
- Catering and hospitality equipment.
Equipment manufacturers and suppliers are invited to submit their eligible products to the new categories through the scheme’s online process. Full details of the submission process are available through www.seai.ie/aca. Submissions are accepted on an ongoing basis with the list updated periodically throughout the year.
Wide Range of Incentives
This expansion of the categories will enable the scheme to provide a wider range of incentives and cost saving opportunities to companies across the majority of energy using equipment in virtually all business sectors. All companies liable for corporation tax will benefit from the ACA as it will reduce tax liabilities, increase cash flow and reduce energy costs in a sustained and ongoing manner.
“The Accelerated Capital Allowance Scheme acts as an important incentive to companies to invest in energy efficient equipment and we welcome the extension of the Scheme,” points out Brian Motherway, chief operations officer, SEAI. “We have seen an upturn in interest around energy efficient equipment since the ACA’s introduction in 2008. The growing awareness of companies looking at the lists of energy efficient equipment is both an acknowledgement of the success of the ACA to date and the genuine shift in business moving towards more energy efficient practices and investment.”
The ACA tax incentive highlights the savings available by buying best-in-class equipment. For example, a company investing in data servers can reduce annual running costs by 20% by choosing the most efficient model, compared to the average model. The investment pays for itself fully in two years and delivers substantial savings over its lifetime.
In order to be included on the ACA eligible list, products must meet stringent efficiency criteria. This provides a strong assurance to users of the Scheme that, as well as purchasing equipment in a tax efficient and cost effective manner, the equipment being purchased is amongst the most energy efficient equipment available. Thus the ACA scheme, as well as being an attractive tax incentive, provides an innovative energy efficiency benchmark to the industry at large.