What is the ACA?
The Accelerated Capital Allowance is a Tax Incentive offered by the Revenue Commisioners to encourage Irish Businesses paying corporation taxes, to invest in the provisioning and installation of energy efficient technologies.The ACA allows a company to write off 100% of the purchase value of qualifying energy efficient equipment against their profit in the year of purchase.
In other words, the Revenue pays You to install Renewable Energy technologies.
What Products Qualify for ACA assistance?
A full list of qualifying products is maintained on the SEAI website here, through a list of Statutory Instruments. 54 Individual Technologies in 10 sectors qualify. Products vary from the Nissan Leaf EV, to Greentherm’s own Clearline Solar Panels.
The Benefits of the ACA
The benefits to the ACA are simple. It enables you to make an investment in the installation of ACA-qualifying products, which will reduce the ongoing energy costs of your business, increasing profiteability. While the purchase price of ACA-qualifying products is often higher than non-ACA products, the full cost of an ACA-qualifying technology can be written off against your profits.
What this means is that, for a business achieving an annual of profit €30,000, if that business where to invest in energy efficiency technologies costing €10,000 – this cost can be written off against profit. The business therefore, will only pay taxes on €20,000 of their profits for the year.
The Payback period on qualifying products is therefore shortened dramatically
Who’s Elegible for the ACA?
- You must be a company operating in Ireland
- You must be paying Corporate tax in Ireland
- The equipment must be bought after the 31st January 2008
- The equipment must be bought new, not second hand.
- The equipment may not be sold, leased or rented on to another customer.
- The equipment must be used in trade.
- The ACA can only be claimed for the accounting period in which the equipment was first provided and used.
- A claim can only be made if the equipment was on the ACA list at the time it was first provided.
- Expenditure must exceed a minimum amount.(For BEMS, €5000. For Lighting and lighting controls,, €3000. For all other categories, €1000)
What Categories of Technology are covered by the ACA?
- Building Energy Management Systems
- BEMS Controls and supporting hardware
- Lighting and Lightning Controls
- Lighting Units.
- Lighting Controls.
- Motors and Variable Speed Drives
- AC Induction Motors
- Variable Speed Drives (VSDs)
- Permanent Magnet Motors
- Information and Communications Technology
- Rack-mounted servers
- Eneterprise Storage Equipment
- Precision Cooling
- Centralised DC Power
- Blade Servers
- ICT Communications
- ICT Optimisation Solutions
- Heating and Electricity Provision
- Localised Steam Generators
- Boilers and Hot Water Heaters
- Steam Systems
- Biomass Boilers
- Boiler Controls
- Condensate Recovery Systems
- Solar Thermal Collectors
- Photovoltaic Systems
- Wind Turbines
- Stationary Fuel Cell Power Systems
- Process and Heating, Ventilation and Air-conditioning (HVAC) Control Systems
- HVAC Zoning Controls
- Heat Exchangers
- Hydraulic Power Recovery Turbines
- Electric and Alternative Fuel Vehicles
- Electric Vehicles and Chargers
- Alternative Energy Vehicle Conversions
- Refrigeration and Cooling
- Compressors and Condensers
- Condensing Units
- Refrigerated Display Cabinets
- Refrigeration System Controls and Monitoring
- Chillers and Fluid Coolers
- Heat Pumps.
- Electromechanical Systems
- Electrical Actuators
- Extrusion Blow Moulding Machines
- Injection Blow Moulding Machines
- Injection Moulding Machines
- Process Energy Management Systems
- Voltage Stabilisation
- Catering and Hospitality
- Commercial Dishwashers
- Commercial Laundry Dryers
- Commercial Combination Ovens
- Commercial Laundry Washers
- Water Boilers
How do I claim the ACA?
ACA is claimed in the same manner as standard Capital Allowance.
- There is a seperate field on the return of income form (CT1) which is used for ACA claims.
- Claims can be made for the period in which the equipment was first provided and used for trading purposes.
- Standard wear and tear allowances for machinery still apply.
- There is no requirement to obtain prior approval. Self assesment provisions still apply
Do Greentherm Products Qualify for the ACA?
The list of approved products is continuously changing. Contact Us for the current list of qualifying Greentherm products.