Accelerated Capital Allowance (ACA) for Businesses. The Accelerated Capital Allowance (ACA) is a tax incentive scheme that promotes investment in energy efficient products & equipment such as EV / PHEV chargers.
Eligibility for ACA
The ACA tax incentive is available to companies, sole traders & farmers that operate and pay corporation tax in Ireland.
Equipment Use
The equipment purchased must be energy efficient & purchased new. It cannot be leased, let, or hired to any person.
Time Period
ACA can be claimed for the accounting period in which the equipment was first provided if the equipment is included in the published list at some stage during that
accounting period. When a business invests in eligible energy efficient equipment, they can then deduct the entire cost of the installation from their profits in the same year i.e., their taxable profit in that year is reduced by the entire cost of the equipment.
How to claim the ACA tax incentive?
- Decide on the equipment you require.Ensure the equipment model is eligible for ACA by checking the Triple E product register before making the purchase.
- 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 of Qualifications
The ACA Tax incentive is subject to the same rules as the standard plant and machinery wear & tear allowance.
The difference is the acceleration to 100% of capital expenditure during the 1st year of its purchase. You do not need approval for expenditure on energy
efficient equipment; normal self-assessment tax provisions apply.
