Accelerated Capital Allowances, Ireland

Accelerated Capital Allowances

Accelerated Capital Allowances : Irish Companies who are paying corporation tax, and who wish to install energy efficient equipment can now benefit from an Irish tax incentive called the Accelerated Capital Allowance.

The ACA offers Irish business a  attractive incentive whereby it allows companies across Ireland to write of 100% of the purchase value of the qualifying energy efficient equipment against their profit in the year of purchase.


What is Energy Efficiency?

Energy efficiency is essentially about achieving the same result with less energy, be it space heating, hot water, lighting, driving or powering the workplace. Efficient use of energy directly contributes to security of energy supply, sustainable transport, affordable energy, competitiveness and environmental sustainability


Accelerated Capital Allowances for energy efficient equipment
Section 46 of the Finance Act 2008 provides that companies may claim 100% of the capital cost of certain energy efficient plant and machinery against corporation tax in year of purchase. The purpose of the ACA scheme is to encourage businesses to purchase plant and machinery that is highly energy efficient and thus make significant savings on energy costs and reduce carbon emissions.

Scheme Overview
Tax incentives are available for a wide range of energy efficient equipment through the Accelerated Capital Allowance (ACA) scheme. The scheme enables companies to claim 100% of the capital cost of certain energy efficient plant and machinery against corporation tax in the year of purchase. The purpose of the ACA scheme is to encourage businesses to purchase plant and machinery that are highly energy efficient and thus make significant savings on energy costs and reduce carbon emissions. The scheme will run for an initial period of three years from 9 October 2008, the date of the first Ministerial OrderS.I. 399 of 2008 to establish the list of approved energy-efficient equipment.  The scheme was extended in Budget 2010 to October 2014.

It is estimated that up to 85% of any company’s equipment procurement needs can be sourced through the ACA list of highly energy efficient products.

– See more at: http://www.nutechrenewables.com/accelerated-capital-allowances/#sthash.ZJlfMmKm.dpuf