About the ACA
The Accelerated Capital Allowance (ACA) is a tax incentive which aims to encourage companies to invest in energy saving technology.The ACA allows companies to write off 100% of the purchase value of qualifying energy efficient equipment against their profit in the year of purchase.
The ACA is based on the existing Capital Allowances tax structure (also referred to as Wear and Tear Allowance) for plant and machinery and is only applicable to eligible energy efficient equipment. Claiming the ACA is also carried out the same way as for the standard Capital Allowances.
The ACA was introduced in the Finance Act, 2008, for a trial period of three years and was extended until 31 December 2014 in the Finance Act, 2011. The scheme was further extended until the end of 2017 following the National Budget in November 2014. To read the complete details of the ACA as detailed in the Finance Act please click here.
- A complete description of the ACA is also given in the ACA Tax Briefing (Part 9.2.4) from Revenue.
- You can download the ACA brochure here or at any time through the link on the left of this page.
ACA Qualifying Products
Qualifying products from the defined ACA equipment categories are listed on the ACA Specified List which is updated on a regular basis. The ACA currently covers 10 different equipment categories and 52 associated technologies, and only energy efficient equipment that meets the relevant eligibility criteria is listed on the ACA Specified List.
On a regular basis, over the course of the the ACA scheme, Statuatory Instruments (S.I.) are published with the latest updates of eligiblity criteria and ACA eligible products (all eligible products published in the SI are also searchable through the online ACA Product Search facility). The current S.I. list is as follows:
Benefits of the ACA
The ACA will benefit companies from year one by:
- Reducing their tax bill
- Increasing their cash flow
- Reducing their energy costs
To subscribe to regular updates on the ACA scheme please click here.