Abbreviated form of legal source(s)
TAC 1997
Description of support scheme
ACA is a tax-relief scheme that promotes the purchase of energy efficient equipment by enterprises located in the Republic of Ireland. More specifically, companies can depreciate 100% of the purchase value of certain energy efficient equipment such as Electric and Alternative Fuel Vehicles against their profit in the year of purchase.
Amount
Under the ACA, enterprises can claim the entire allowance (100% of the purchase value of specified energy efficient equipment) in the first year, instead of claiming for the standard “wear and tear” allowance (provided at an annual rate of 12.5% of the capital expenditure over an 8-year period) (section 285A (2) TCA 1997). Minimum expenditure to qualify for the ACA is defined at € 1,000 for Electric and Alternative Fuel e.g., hydrogen or LNG Vehicles. Additionally, the allowance can be based either on actual cost, or the lower cost or EUR 24,000.
Addressees
Enterprises paying corporation tax in Ireland are eligible for support.
Procedure
Firstly, interested applicants should inquire whether the equipment is eligible for support. Eligible equipment is listed in the Triple E Products Register at the Sustainable Energy Authority of Ireland (https://triplee.seai.ie/AcaProducts/Search.aspx). If included, the equipment is purchased and claims the ACA on their tax return of income (form CT1) along with other wear and tear allowances for plant and machinery (section 285A (2) TCA 1997).
Competent authority
- Irish Revenue Commissioners
- SEAI