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

Building Energy Management Systems

  • BEMS Controls and Supporting Hardware

Lighting and Lighting Controls

  • Lighting Units
  • Lighting Controls

Motors and Variable Speed Drives

  • AC Induction Motors
  • Variable Speed Drivers (VSDs)
  • Permanent Magnet Motors

Process and Heating, Ventilation and Air-conditioning (HVAC) Control Systems

  • HVAC Zoning Controls
  • Heat Exchangers
  • Pumps
  • Hydraulic Power Recovery Turbines
  • Blowers
  • Fans

Catering and Hospitality

  • Commercial Dishwashers
  • Commercial Laundry Dryers
  • Commercial Combination Ovens
  • Commercial Laundry Washers
  • Water Boilers

Information and Communications Technology

  • Rack-mounted servers
  • Eneterprise Storage Equipment
  • Precision Cooling
  • Centralised DC Power
  • UPS
  • Blade Servers
  • ICT Communications
  • ICT Optimisation Solutions

Heating and Electricity Provision

  • Co-generation
  • Localised Steam Generators
  • Boilers and Hot Water Heaters
  • Steam Systems
  • Biomass Boilers
  • Boiler Controls
  • Condensate Recovery Systems
  • Solar Thermal Collectors
  • Photovoltaic Systems
  • Inverters
  • Wind Turbines
  • Stationary Fuel Cell Power Systems

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

How to Claim the ACA:

To claim the ACA, businesses and individuals need to ensure that the pruchased equipment is on the list of qualifying products. The revenue commissioners, responsible for adminstering the ACA scheme, provide the most up-to-date list. Once the eligible equipment is installed and operational, the cost can be claimed as a tax deduction in the same year. Detailed documentation, including invoices and receipts, must be retained for tax purposes.

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?

Yes, Greentherm offers energy-efficient products that are eligible for the ACA. Currently, the Viridian solar thermal and Photovoltaic panels, as well as the Hitachi heat pumps, comply with the ACA requirements. However, it’s essential to not that th list of approved products is subject to change. To obtain the most current information on qualifying Greentherm products, please contact us directly.