We are familiar with, and can advise on, various funding sources and eligbility of Enhanced Capital Allowances (ECA). A tax allowance scheme that was established to encourage UK organisations to invest in energy efficient systems.
The Enhanced Capital Allowance (ECA) scheme was established to encourage UK businesses to invest in energy efficient equipment. The scheme provides 100% first-year allowances for spending on equipment that meets published energy-saving criteria in Energy Technology List (ETL) managed by the Carbon Trust. By claiming an ECA, businesses can obtain a reduction on their businesses taxable profit by the full cost of spending in the year the investment is made. This provides a helpful cash flow boost and a shortened payback period in addition to cost savings from reduced energy bills.e.g. - If a business paying tax at the rate of 30% spends £10,000 on products on the ETL, they will reduce their tax bill by £3,000 in the year of investment.
The Energy Technology List was set up to identify those products qualifying for ECA tax relief and which offer energy efficiency savings. The Energy Technology List currently features over 6,000 products.