Guide

First-year allowances for energy saving products

Introduction

The Enhanced Capital Allowance (ECA) energy scheme provides tax allowances for energy saving products.

The scheme offers a 100 per cent first-year allowance for investments in certain energy saving plant and machinery. If you buy equipment that qualifies, you can write off - ie deduct - 100 per cent of the cost against that year's taxable profits. This could save you a lot of money, as well as reduce your business' energy use, carbon footprint and climate change levy payments.

The ECA energy scheme supports a variety of energy saving technologies - such as energy efficient boilers, lighting, refrigeration equipment, and metering and monitoring systems. This guide explains how the scheme works, what energy saving products qualify, and how to claim an allowance.