UK Government Subsidies (ECA and CCL)
The Enhanced Capital Allowance (ECA) Scheme provides up-front tax relief for businesses paying corporation tax or income tax that invest in energy-saving equipment. To qualify for ECA the equipment must be listed on the Energy Technology List.
- Products listed on the Energy Technology list are energy efficient, resulting in significant long-term financial benefits.
- In addition, investment in product listed on the Energy Technology List may also qualify for Enhanced Capital Allowance, a tax relief that permits businesses to deduct 100% of capital expenditure against taxable profits, delivering a significant cash flow boost and shortening the payback period on the investment.
- Investing in energy-efficient technologies reduces energy costs, Climate Change Levy (CCL) payments and climate change impact.
The Climate Change Levy (CCL) is a tax on the use of energy in industry, commerce and the public sector, with offsetting cuts in employers’ National Insurance Contributions – NICs – and additional support for energy efficiency schemes and renewable sources of energy.
NOTE: above text is taken from official websites www.eca.gov.uk and www.defra.gov.uk
Certain compressor parts and associated products within the Hydrovane range have been approved by the UK Government as energy saving products and have been included as part of the Enhanced Capital Allowance Scheme. Please contact Hydrovane directly for further details.