Triple E Products Register Accelerated Capital Allowance

Triple E Products Register & Accelerated Capital Allowance (ACA) Madeline Hallinan Programme Manager

Introduction Who We Are The Sustainable Energy Authority of Ireland (SEAI) was set up by the government in 2002 as Ireland’s national energy authority. Our Mission To play a leading role in transforming Ireland into a society based on sustainable energy structures, technologies and practices. Key Strategic Objectives • Energy efficiency first • Low carbon energy sources • Innovation and integration

Business Support Available Get certified Large Industry Energy Network Get networking Small Business Training (Energy Efficiency) Get basic training Energy Assessments for SMEs Get started Awards Get a programme Energy MAP Web site Energy MAP (Management Action Programme) Training Grants and accelerated capital allowances Energy Agreements – EN 16001

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Technology Guides Identifies opportunities for saving with lighting systems • • • General Lighting Guide Offices Retail Hospitality Schools Libraries Manufacturing & Warehouses Sports and Leisure Lighting Controls Hospitals Exterior Spaces

Triple E Overview Triple E Products Register: • Register of highly energy efficient products based on stringent criteria • Note: Products are not Approved or Accredited • Energy efficiency procurement benchmark. • SI 151 -2011, requires Public Sector procure against Triple E criteria Accelerated Capital Allowances (ACA) • Tax incentive for specific energy efficient products listed on the Triple E Products Register

Triple E online www. seai. ie/Triple. E

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ACA online www. seai. ie/aca

What is the ACA?

What is the ACA? • It’s a tax incentive (not a grant!) introduced in the 2008 Finance Act runs until 2014 • Specifically for companies paying corporation tax. • Write-off 100% of eligible equipment cost against profit in the first year (normally over 8 years!).

How the ACA works ACA example: • Company profit = € 100, 000 • Tax on profit @ 12. 5% => € 12, 500 as standard tax bill • Equipment expenditure = € 20, 000 Equipment costs deductable from profit Remaining taxable profit: Tax payable on profit: (@ 12. 5%) Tax saved in year one W/o ACA With ACA € 2, 500 € 20, 000 [1/8 of total] [8/8 of total] € 97, 500 € 80, 000 € 12, 188 € 10, 000 € 313 € 2, 500

ACA Benefits More Cash, Less Tax. . and reduces energy costs!

SEAI’s role Responsibility for maintaining list of eligible products through Triple E Register • Develop energy efficiency technology criteria • Administer and check quarterly product submissions by equipment suppliers Important: ACA tax incentive is not claimed through SEAI

What ACA covers. . • 52 Separate Technologies • 8000+ Eligible Products

Triple E / ACA Categories • Lighting • Motors & Drives • Building Energy Management Systems (BEMS) • Information and Communications Technology (ICT) • Heating and Electricity Provision • Process and Heating, Ventilation and Air-conditioning (HVAC) Control Systems • Electric and Alternative Fuel Vehicles • Refrigeration and Cooling • Electro-mechanical devices • Catering and Hospitality

Product submission process 1. Supplier checks that product meets criteria 2. Supplier submits basic product details through Triple E account for consideration 3. SEAI verifies submission is correct and requests supporting documentation 4. Supplier provides supporting documentation through Triple E account 5. SEAI checks documentation 6. Ministerial order required to add ACA product to list

Claiming the ACA 1. Check item is on the Triple E Products Register and eligible for ACA 2. Procure as normal. 3. Ask supplier to record product details as per list on invoice. 4. Claim allowance on annual tax return form.

Claiming the ACA Claim Value = Cost associated with provision of eligible products NB: Provision could be interpreted to include acquisition, transport and installation costs if they are directly related to the provision of the qualifying equipment Minimum expenditure for Lighting is € 3, 000

Claiming the ACA when no profit is made As is the case for standard capital allowances, the ACA allowance can be carried over to the following year if no profit is made in the year of product purchase.

Thank you www. seai. ie/triplee E-mail: triplee@seai. ie