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Accelerated Capital Allowance (ACA) SEAI – Hannes Mac Nulty

Accelerated Capital Allowance (ACA) SEAI – Hannes Mac Nulty. What is the ACA?. It’s a tax incentive (not a grant!) introduced in the 2008 Finance Act Specifically for companies paying corporation tax.

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Accelerated Capital Allowance (ACA) SEAI – Hannes Mac Nulty

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  1. Accelerated Capital Allowance (ACA)SEAI – Hannes Mac Nulty

  2. What is the ACA? • It’s a tax incentive (not a grant!) introduced in the 2008 Finance Act • Specifically for companies paying corporation tax. • Write-off 100% of eligible equipment cost against profit in the first year (normally over 8 years!).

  3. How the ACA works ACA example: • Company profit = €100,000 • Tax on profit @ 12.5% => €12,500 as standard tax bill • Equipment expenditure = €20,000 €2,500 [1/8 of total] €20,000 [8/8 of total] €80,000 €97,500 €12,188 €10,000 €313 €2,500

  4. ACA Benefits

  5. ACA Benefits ..and reduces energy costs!

  6. SEAI’s role Responsibility for maintaining list of eligible products • Develop energy efficiency technology criteria • Administer and check quarterly product submissions by equipment suppliers • List provides Best-in-Class Efficiency Benchmark NB: Products are not Approved or Accredited!

  7. What ACA covers.. • 10 Equipment Categories • 49 Separate Technologies • 6000+ Eligible Products

  8. Current ACA Categories 2008 • Lighting • Motors & Drives • Building Energy Management Systems (BEMS) 2009 • Information and Communications Technology (ICT) • Heating and Electricity Provision • Process and Heating, Ventilation and Air-conditioning (HVAC) Control Systems • Electric and Alternative Fuel Vehicles

  9. New ACA Categories 2010 • Refrigeration and Cooling • Electro-mechanical devices • Catering and Hospitality

  10. ACA online www.seai.ie/aca

  11. ACA online ACA product search facility

  12. List development • SEI receive submissions from suppliers. • Products are checked. • Supplier must provide documented evidence to demonstrate criteria compliance. • Updated list sent for Ministerial sign-off. • List published on SEI website (approx. every quarter).

  13. Claiming the ACA • Check item is on the SEI list of eligible products • Procure as normal. • Ask supplier to record product details as per list on invoice. • Claim allowance on annual tax return form.

  14. Claiming the ACA Claim Value = Cost associated with provision of eligible products NB: Provision could be interpreted to include acquisition, transport and installation costs if they are directly related to the provision of the qualifying equipment

  15. Claiming the ACA Claiming the ACA when no profit is made As is the case for standard capital allowances, the ACA allowances can be carried over to the following year if no profit is made in the year of product purchase.

  16. Triple E Products Register: • Adapted from the current list of products eligible for the Accelerated Capital Allowance (ACA) scheme • Register of top 10-15% most efficient products in technology class • Provides a best in class efficiency procurement benchmark based on stringent criteria. Triple E Products RegisterExcellence in Energy Efficiency • Streamlined procurement and long term energy savings • www.seai.ie/tripleE

  17. Thank you www.seai.ie/acaE-mail: aca@seai.ie

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