Enhanced capital allowances: Lighting the way
The Enhanced Capital Allowances (ECA) scheme offers a 100% first year allowance for expenditure incurred on energy efficient and environmentally beneficial plant and machinery. The intention of the ECA scheme is to encourage investment in energy saving plant and machinery by providing accelerated tax relief.
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Carbon Trust loans funding eligibility now relaxed.
As well as the Enhanced Capital Allowance, Carbon Trust interest-free loans are available to cover the costs of investing in energy-saving lighting.
This week, the Carbon Trust announced that the maximum loan it offered for energy efficiency projects had risen to £400,000. What was less widely reported was that the eligibility criteria for the loans had been relaxed: more details can be found at Energy-Saving News.
The ETL list which determines which projects are eligible for Enhanced Capital Allowances also applies to Carbon Trust projects. This has led to a certain amount of uncertainty with regards to lighting, which currently has no defined list. Enquiries made to the Carbon Trust can easily determine whether a lighting product qualifies or not where doubt exists, since they have a ready list of approved products.