The ACA Scheme
The Accelerated Capital Allowance (ACA) scheme is a unique initiative in Ireland that not only promotes energy-efficient technologies but also rewards businesses and individuals who invest in qualifying products. This article will delve into the details of the ACA, including what it is, the products that qualify, the benefits it offers, eligibility criteria, categories of technology covers, and how to claim the ACA. We will also address what Greentherm products qualify for the ACA.
What is the ACA Scheme?
The ACA scheme is a tax incentive program introduced by the Irish government to encourage the adoption of energy-efficient technologies. It allows businesses to write off the full cost of eligible equipment against their taxable income in the year of purchase, rather than spreading the cost over several years. In essence, the taxman pays you to save money on energy consumption
Products that Qualify
The ACA covers a wide range of energy-efficient products across various sectors. These include renewable energy technologies, energy-efficient heating and cooling systems, energy management and monitoring systems, lighting equipment, electric and hybrid vehicles, and water-efficient equipment. The list of qualifying products is regularly updated to reflect advancements in technology and industry standards.
Who is Eligible?
The ACA is open to all businesses, sole traders, farmers, and landlords who pay tax in Ireland. Whether you are a large corporation or a small-scale entrepreneur, the ACA provides an equal opportunity to benefit from energy-efficient investments. It is important to note that the ACA applies to both new and second-hand equipment, as long as it meets the necessary efficiency criteria.
- 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)
Categories of Technology Covered