ACA Tax Break News

The Accelerated Capital Allowance (ACA) scheme provides tax relief on the cost of installing energy-efficient equipment, and Budget 2017 extended the scheme to sole traders and non-corporates.

The latest extension bringing it out to the end of 2017. It allows eligible recipients to write off 100% of the purchase value of qualifying energy-efficient equipment against profits in the year in which it was purchased. 

Qualifying Equipment

The list of approved energy-efficient equipment is vast, comprising some 17,000 products and covering 52 technologies. The Sustainable Energy Authority of Ireland sanctions the eligible ACA products and the product categories listed on the register can he perused at The ten categories cover the following:

  • business energy management systems.
  • lighting
  • motors and drives
  • ICT equipment such as computer servers
  • heating and electricity provision
  • process and heating, ventilation and air-conditioning control systems
  • electric and alternative fuel vehicles
  • refrigeration and cooling systems
  • electro-mechanical systems
  • catering and hospitality equipment

It is important to ensure that the energy-efficient equipment they want to buy is listed with the SEAI. It is not enough to assume that if the equipment has energy-efficient characteristics that the allowances will apply.


Claiming ACA

The ACA covers costs directly related to the provision of the eligible equipment. ‘Provision’ can be interpreted to include acquisition, transport and installation costs if they are directly related to the provision of the qualifying equipment. There are specified minimum amounts that need to be spent on energy-efficient equipment in each of the product categories in order to qualify for the ACA. For building energy management systems, the minimum spend is €5,000 and for lighting, the minimum spend is €3,000. All of the other categories require a minimum spend of €1,000.

There is also no requirement to obtain approval for expenditure on the energy-efficient equipment. Full details on the scan are available on