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Accelerated Capital Allowances

Accelerated Capital Allowances

ACA

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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 was approved for an initial period of three years from 9 October 2008, the date of the first Ministerial Order to establish the list of approved energy-efficient equipment.  In Budget 2010, the scheme was extended to October 2014. 

A review and cost based analysis of the scheme was carried out in October 2014. The primary aim of this review was to set out the context and rationale for the scheme, evaluate its overall effectiveness and to make recommendations regarding  continuance of the ACA. In his 2015 Budget speech Minister Noonan announced the continuation of the scheme for a further three years to 31 December 2017. 

On a regular basis, Statutory Instruments (S.I.) are published with the latest updates of eligibility criteria and ACA eligible products.  With the publication of the latest Order, there are now nearly 10,500 products on the ACA Register, covering 52 technologies. 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.

Legislation Documents

 

 

S.I. No. 446 of 2016 TAXES CONSOLIDATION ACT 1997https://www.dccae.gov.ie/en-ie/energy/legislation/Documents/10/SI 446 of 2016 Taxes Consolidation Act 1997.pdfS.I. No. 446 of 2016 TAXES CONSOLIDATION ACT 199718/07/2016 23:00:00pdf216687
S.I NO. 587 of 2015 TAXES CONSOLIDATION ACT 1997https://www.dccae.gov.ie/en-ie/energy/legislation/Documents/10/S.I No. 587 of 2015.pdfS.I NO. 587 of 2015 TAXES CONSOLIDATION ACT 199711/12/2015 00:00:00pdf3166167
S.I NO. 254 OF 2015 TAXES CONSOLIDATION ACT 1997https://www.dccae.gov.ie/en-ie/energy/legislation/Documents/10/S.I No. 254 of 2015.pdfS.I NO. 254 OF 2015 TAXES CONSOLIDATION ACT 199730/04/2015 23:00:00pdf2171018
S.I. No. 605 of 2014 TAXES CONSOLIDATION ACT 1997https://www.dccae.gov.ie/en-ie/energy/legislation/Documents/10/S.I No. 605 of 2014.pdfS.I. No. 605 of 2014 TAXES CONSOLIDATION ACT 199706/01/2015 00:00:00pdf1694042
S.I No. 208 of 2014 TAXES CONSOLIDATION ACT 1997 https://www.dccae.gov.ie/en-ie/energy/legislation/Documents/10/S.I No. 208 of 2014.pdfS.I No. 208 of 2014 TAXES CONSOLIDATION ACT 1997 19/05/2014 23:00:00pdf390460
S.I No. 482 of 2013 TAXES CONSOLIDATION ACT 1997https://www.dccae.gov.ie/en-ie/energy/legislation/Documents/10/S.I No. 482 of 2013.pdfS.I No. 482 of 2013 TAXES CONSOLIDATION ACT 199713/12/2013 00:00:00pdf444977
S.I No 123 of 2013 TAXES CONSOLIDATION ACT 1997 https://www.dccae.gov.ie/en-ie/energy/legislation/Documents/10/S.I No. 123 of 2013.pdfS.I No 123 of 2013 TAXES CONSOLIDATION ACT 1997 11/04/2013 23:00:00pdf1715595
S.I No. 459 of 2012 TAXES CONSOLIDATION ACT 1997 https://www.dccae.gov.ie/en-ie/energy/legislation/Documents/10/S.I No. 459 of 2012.pdfS.I No. 459 of 2012 TAXES CONSOLIDATION ACT 1997 22/10/2012 23:00:00pdf1418993
S.I No 107 of 2012 TAXES CONSOLIDATION ACT 1997 https://www.dccae.gov.ie/en-ie/energy/legislation/Documents/10/S.I No. 107 of 2012.pdfS.I No 107 of 2012 TAXES CONSOLIDATION ACT 1997 09/04/2012 23:00:00pdf976386
S.I No. 675 of 2011 TAXES CONSOLIDATION ACT 1997 https://www.dccae.gov.ie/en-ie/energy/legislation/Documents/10/S.I No. 675 of 2011.pdfS.I No. 675 of 2011 TAXES CONSOLIDATION ACT 1997 27/12/2011 00:00:00pdf780693