They don’t make it easy, but the Government has shared some important information with us about changes to the Enhanced Capital Allowance Scheme (ECA) for energy saving technologies.
You would be forgiven if, like us, you got lost in the haystack looking for needle. But this is what we have learned – and it might make a difference to your company’s bottom line.
The ECA Scheme is a key part of the Government’s programme to manage climate change. It provides businesses with enhanced tax relief for investments in equipment that meets published energy-saving criteria.
The Government confirmed in the Budget that changes to the ECA Scheme for energy saving technologies would come into effect in the late summer or early autumn 2013. These changes are based upon recommendations made to Government by the Carbon Trust in November 2012.
As part of the scheme, the proposed changes to the criteria for Lighting – High Efficiency Lighting Units and White Light Emitting Diode Lighting Units have been made and the updated criteria will be implemented in Statute in late summer or early autumn 2013. They will form part of the Energy Technology List.
The proposed changes are outlined in the table:
|High Efficiency Lighting Units||Increased performance thresholds to refocus ECA support on the best performing products. Aligned criteria relating to standby power with White LED lighting units.|
|White Light Emitting Diode Lighting Units||Increased performance thresholds to refocus ECA support on the best performing products. Aligned criteria regarding colour rendering with forthcoming Eco-Design criteria.|
We believe this means that companies who buy best-performing lighting units now will stand to gain because they can claim the ECA allowance for these.
You can find out how to claim and more background information about the Energy Technology List, the ECA scheme and its benefits on the DECC website https://etl.decc.gov.uk/etl/site.html