What are Enhanced Capital Allowances and how can I benefit from them?
Enhanced Capital Allowance (ECA) is a fiscal measure designed to reward companies that invest in energy efficient products. Part of the taxation system, companies making a profit and paying corporation tax can claim 100% of the cost of installing particular products in the year of installation rather than having to depreciate it over following years. The measure is currently worth about 5-6% of the product purchase price. To gain the ECA the product installed must meet the criteria published on the Energy Technology List (ETL) administered on behalf of the Treasury by the Carbon Trust. In the 2008 budget, claims where extended to loss making companies so that those struggling in difficult financial circumstances can still invest in the most efficient technologies. Public sector organisations cannot directly claim ECAs. However, provision of an Energy Centre through a CEM/ESCO companies can incorporate the fiscal benefit of ECAs within an energy services contract with a public body. Man
