Energy Minister Eamon Ryan today announced a major expansion of the range of technologies covered by the scheme of Accelerated Capital Allowances for Energy Efficient Equipment. This new tax incentive measure was introduced under section 46 of the Finance Act 2008 to encourage companies to purchase the most energy efficient plant, machinery and equipment for use within their business. Existing categories include lighting, lighting controls, motors, variable speed drives and building energy management systems, with products already listed on SEI’s website at www.sei.ie/aca
Today Minister Ryan announced that this is to be expanded in the upcoming Finance Bill to include -
§ Biofuel conversion kits
§ IT infrastructure hardware and associated cooling equipment
§ Electricity generation equipment (for company’s own use) e.g. Solar PV, wind turbines, CHP and anaerobic digestion equipment
§ Boiler equipment and control and recovery systems
§ Heating, ventilation and air conditioning systems (HVAC)
§ Advanced liquid and gas handling equipment.
Announcing this major expansion of the measure Minister Ryan said, “Companies buying equipment are faced with an important investment decision – should they purchase the cheapest model or instead buy the model that will be the cheapest over its lifespan? The energy used by equipment can be a far greater cost than the equipment itself. Energy efficient equipment is the better buy for the smart business.
The major expansion of the Accelerated Capital Allowance scheme I am announcing today will see the scheme cover equipment accounting for at least 60% of the energy use by industry in Ireland. All businesses should now be looking to save on costs and energy under this scheme.”
-ENDS-
Note for Editors:
The scheme of Accelerated Capital Allowances for Energy Efficient Equipment was introduced in section 46 of the Finance Act 2008. Companies which purchase specific energy efficient equipment are able to claim their full cost against corporation tax in the year of purchase (100% capital allowance) instead of the usual 12½% over 8 years for plant and machinery.
Eligibility criteria which must be met by these products are published on the website of Sustainable Energy Ireland at www.sei.ie/aca Also listed on the website are the listings of the actual products eligible for these tax allowances, based on submissions from manufacturers and their agents. These listings are updated quarterly.
Following enactment of the Finance Bill, SEI will develop new efficiency criteria to be met by the expanded range of technologies. Manufacturers will then be invited to submit their products for inclusion in the scheme.