The Energy Technology List & Enhanced Capital Allowances
Energy saving equipment – financial advantages & good for the environment
The Enhanced Capital Allowance (ECA) scheme, ending in in 2020, is currently a key part of the Government’s programme to manage climate change. It is designed to encourage businesses to invest in energy-saving equipment.
If you buy equipment that qualifies, you can write off 100% of the cost against that year’s tax profits.
The Carbon Trust & DECC (Department of Energy & Climate Change) increased the minimum criteria for compliance in 2013 to ensure only the highest performing products are on the Energy Technology List (ETL).
At Hamworthy Heating significant effort goes into ensuring our products not only meet the required standard to qualify but go above and beyond.
The ECA scheme benefits property owners or facilities management companies that pay business or corporation tax.
Purchasing a boiler which qualifies for ECAs will not only bring significant financial savings but will also improve a company’s energy efficiency and lessen its impact on the environment.
Capital allowances enable a business to write off the capital cost of purchasing heating plant, such as boilers, against their taxable profits, taking the place of depreciation charged in commercial accounts reducing the business’s tax liability and offering cash flow advantages.
The Enhanced Capital Allowances will end on 1 April 2020 (companies) and 6 April 2020 (unincorporated businesses). The revenue saved by the Government by stopping the scheme will go towards the Industrial Energy Transformation Fund instead. More information about this can be found here.