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 the long-standing ‘Wear and Tear Allowance’ for investment in capital plant and machinery, whereby capital depreciation can be compensated through a reduction in an organisation’s tax liability.
All PV Solar Ireland Products are Tripple E Registered
The ACA scheme allows a sole trader, farmer or company that pays corporation tax or income tax on trading or professional income in Ireland to deduct the full cost of the equipment from their profits in the year of purchase. As a result, the business’s taxable profits are reduced by the value of qualifying capital expenditure. By contrast, the Wear and Tear Allowance provides for the same tax reduction, but this is spread evenly over an eight-year period.
Eligibility for ACA
Companies, sole traders and farmers that operate and pay corporation tax or income tax on trading or professional income 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.
Equipment Category Solar PV
Minimum expenditure (for ACA incentive)
Technology & Associated Criteria
Heating and Electricity Provision
Accelerated Capital Allowance (ACA) is a tax incentive scheme in Ireland designed to encourage businesses to invest in energy-efficient equipment and technologies. Under this scheme, businesses can benefit from accelerated tax relief on the cost of qualifying energy-efficient equipment. The purpose of this initiative is to promote the use of environmentally friendly technologies and to help Ireland achieve its energy efficiency and environmental targets.
How to claim the ACA?
Choose your Solar PV System from PV Solar Ireland.
Confirm with us your intention to claim and we will ensure any additional bespoke items from your project are added to Tripple E register
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 Give our team a call and we can run through our side of things for you. We will always recommend however you always get assistance/confirmation from your taxation advisor or by visiting revenue.ie