Government offers tax breaks for saving energy

A Lafert Electric Motors product story
Edited by the Engineeringtalk editorial team Nov 12, 2007

Lafert's AMHE High Efficiency range and its two-speed motors have approval and listing within the ETPL.

The Enhanced Capital Allowance Scheme (ECA) is a key part of the UK government's programme to manage climate change.

It provides businesses with significant tax relief benefits for investments, specifically in equipment that meets published energy-saving criteria.

100% first-year Enhanced Capital Allowances (ECA) allow a company to write off the full cost of an investment in designated energy saving plant and machinery against its taxable profits of the period in which the investment is made.

The general rate of capital allowances for spending on plant and machinery is 25% a year on the reducing balance basis.

Investments in ECA products therefore offer significant cash flow benefits for companies.

By investing in energy saving equipment, the lower running costs contribute immediately to reducing energy bills whilst simultaneously reducing a company's Climate Change Levy, a charge made based upon energy consumed.

Equipment qualifying for ECA must be on the Energy Technology List (ETL).

To achieve this, it must comply with standards on the government's Energy Technology Criteria List (ETCL) and then be listed in the register of products as having been assessed as being compliant, the Energy Technology Product List or ETPL.

Lafert's AMHE High Efficiency range and its two-speed motors have approval and listing within the ETPL.

Qualification for ECA status is a licence arrangement with the Carbon Trust.

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