| Tax
saving benefits
The Enhanced
Capital Allowance (ECA) scheme is a key part of the Governments'
programme to manage climate change. The scheme is designed
to encourage businesses to invest in energy-saving eco-friendly
equipment through tax saving incentives offered to businesses
that invest in equipment that meets certain energy-saving
criteria.
What
is ECA?
 ECAs
enable businesses to claim 100% first-year capital allowances
on their spending on purchased energy-saving plant and machinery.
Providing
the equipment is listed on the Energy Technology list then
the total installed value of the systems can be written off
against taxable profits during the year in which the purchase
is made.
The Government
introduced the ECA scheme in 2001 to encourage businesses
to invest in low carbon, energy-saving equipment. The ECA
scheme can bring significant financial savings in the short
and long-term as well as improving a company's energy-efficiency
and its impact on the environment.
 As
part of the Climate Change Levy Programme it is designed to
help the UK reach its Kyoto target of reducing carbon emissions
by 20%. Climate change is becoming one of the biggest threats
to our planet’s environment, and the biggest cause of this
is carbon emissions produced by burning fossil fuels.
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 The
Energy Technology List (ETL) details the criteria for each
type of technology and lists those products in each category
that meet them. It is managed by the Carbon Trust on behalf
of the Government.
We
ensure all our installations qualify for the ECA scheme allowing
our customers to benefit from this tax break which can deliver
a helpful cash flow boost and a shortened pay back period.
For
more information please log onto http://etl.decc.gov.uk/etl
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