Want to reduce your tax bill and your energy costs? Accelerated Capital Allowance is a tax incentive encouraging investment in energy saving technology.
ACA and Triple E
The Accelerated Capital Allowance (ACA) is a tax incentive scheme that promotes investment in energy efficient products & equipment. The ACA is based on a long-standing approach for the treatment of capital allowances for plant and machinery, whereby wear and tear can be taken into account as a deduction for tax purposes.
In contrast, the ACA scheme allows a company to write down the cost of Triple E listed equipment in the year of purchase, rather than over the eight-year period that is standard for plant and machinery capital allowances. This provides an incentive for companies and sole-traders to choose a qualifying energy efficient option when purchasing equipment.Search the register
Eligibility for ACA
Companies, sole traders, and farmers that operate and pay corporation tax in Ireland can avail of the ACA scheme.
The equipment purchased must be new and bought for use in a trade. It cannot be leased, let or hired to any person, body or organisation.
ACA can be claimed for the accounting period in which the equipment was first provided, as long as the equipment is included on the published list at some stage during that accounting period.
Eligible costs and minimum expenditure
ACA is available for costs directly related to providing the equipment. Expenditure on the technology must be equal to or exceed the minimum amounts for the relevant class of technology. Find the minimum amounts on the categories and criteria for Triple E page.
How to claim the ACA
- Decide on the equipment you require.
- Ensure the equipment model is eligible for ACA by checking the Triple E product register before making purchase.
- Claim the ACA through your company’s return of income form (CT1). There is now a field for ACA on the form alongside the standard capital allowances entry field.
Rules and qualifications
The ACA is subject to the same rules as the standard plant & machinery wear and tear allowance. The difference is the acceleration to 100% of capital expenditure during the first year of its purchase. You don't need approval for expenditure on energy efficient equipment; normal self-assessment tax provisions apply.
Still unclear on whether you qualify for the ACA? Get assistance from your taxation advisor or by visiting revenue.ie.