Business And Leadership: Firms to benefit from energy-efficient equipment rebate under Finance Bill

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Firms to benefit from energy-efficient equipment rebate under Finance Bill

05.02.2010
Businesses that buy energy-efficient equipment will be able write off its full cost against corporation tax in the year of purchase under new a new measure contained in the Finance Bill, which was published by the Government yesterday.

The Bill contains a measure to extend the Accelerated Capital Allowance Scheme to include up to 40 different technologies. The scheme was introduced in 2008 and three new categories of technology were added in Budget 2010.

These are refrigeration and cooling systems, electro-mechanical systems and and hospitality equipment.

The refrigeration category will be highly relevant to the food retail industry, such as supermarkets, who may wish to replace or upgrade refrigeration cabinets, chiller units etc.

The electro-mechanical category will be relevant to the manufacturing sector, who may wish to replace outmoded hydraulic or compressed air equipment, while the catering and hospitality category will be very relevant to the hotel and restaurant trades and includes equipment such as commercial ovens, dryers, dishwashers etc.

All Irish business, large and small, can now receive tax relief on these three technology categories, as well as IT software and hardware, lighting and electric vehicles.

Other categories of equipment such as certain wind turbines and solar photovoltaic technology are also eligible for the scheme.

“Despite recent reductions in prices, energy remains a significant element of business overheads. Every day, companies are asking how they can be more efficient in the way they use and manage their energy,” said Minister for Communications, Energy and Natural Resources Eamon Ryan TD (pictured).

“With this level of interest and dedication on the part of businesspeople, it is right that we assist them in making the switch,” he added.

“The aim of this scheme is to help Irish businesses of all sizes, not only to reduce their energy use, but crucially to save money. It’s working well and I encourage all businesses to get involved,” the Minister said.

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