How can we help?

Search

Accelerated Capital Allowances

Tax Relief for investments in Energy Efficiency

The SEAI Accelerated Capital Allowances (ACA) is a program in Ireland that provides a tax benefit for businesses that invest in certain energy-efficient equipment

Who is it for?

The SEAI Accelerated Capital Allowance (ACA) program is for businesses in Ireland that pay corporation tax or income tax on trading or professional income. This includes:

  • Companies: Any registered business entity in Ireland can benefit from the ACA program.
  • Sole traders: Individuals running their own businesses can claim the ACA for eligible equipment used in their trade.
  • Farmers: Farms can also take advantage of the ACA to offset the cost of energy-efficient equipment used in their operations.
  • It's important to note that the equipment must be new and owned by the business to qualify for the tax deduction. Leased or hired equipment won't be eligible.

Eligibility is subject to terms and conditions.


What do you get?

Tax relief: Businesses can claim a deduction of 100% of the cost of the qualifying equipment against their corporation tax or income tax in the first year they use it. This significantly reduces their taxable income, resulting in lower taxes owed.


What can it be used for?

What can it be used for? 

The SEAI Accelerated Capital Allowances (ACA) program can be used for a variety of energy-efficient equipment that meet the program's criteria. These criteria include the equipment's energy efficiency rating and its function. While electric vehicles (EVs) and charging points are a common example, there are many other categories that qualify [https://www.seai.ie/business-and-public-sector/business-grants-and-supports/accelerated-capital-allowance/].

Here are some broad categories of equipment that might be eligible for the SEAI ACA program:

  • Energy-efficient machinery: This could include industrial processes, heating and ventilation systems, or agricultural equipment that meet the program's efficiency standards.
  • Building upgrades: Insulation materials, energy-efficient windows, or lighting systems installed in a business's buildings could qualify.
  • Renewable energy technology: Solar panels, heat pumps, or biomass boilers used to generate renewable energy for a business can potentially be covered.
  • Electric vehicles (EVs): Purchasing electric vehicles and charging points for a company fleet can benefit from the ACA program.
  • Information and Communication Technology (ICT): Energy-efficient servers, network equipment, or data center upgrades might be included on the SEAI's approved list.

Remember, the specific equipment you're considering must be on the SEAI's list of qualified products to be eligible for the ACA tax deduction.  You can find this list on the SEAI website [https://www.seai.ie/business-and-public-sector/business-grants-and-supports/accelerated-capital-allowance].


Get in touch

If this sounds like the right support for your business, call our dedicated hub for more details on how to apply.

*Phone operating hours are Mon - Fri from 9am - 5pm

© 2024 National Enterprise Hub. All right reserved.
Provided by Enterprise Ireland, on behalf of the Government of Ireland.