Summary:
The Accelerated Capital Allowance (ACA) is a tax incentive scheme that encourages investment in energy efficient products and equipment. This scheme allows a sole trader, farmer or company that pays corporation tax or income tax on trading or professional income in Ireland to deduct the full cost of the equipment from their profits in the year of purchase, thereby reducing their taxable profits. For cars under the category “Electric and Alternative Fuel Vehicles”, the allowance is based on the lower of the actual cost of the vehicle or €24,000.
Eligibility:
Companies, sole traders and farmers that operate and pay corporation tax or income tax on trading or professional income in Ireland can avail of the ACA scheme. The equipment purchased must be new and bought for use in a trade. It cannot be leased, let or hired to any person, body or organisation. [Eligibility Criteria](https://www.localenterprise.ie/Discover-Business-Supports/Financial-Supports/Eligibility-Criteria/Eligibility-Criteria.html)
Funding Amount:
The allowance is based on the full cost of the equipment or €24,000 for electric and alternative fuel vehicles.
How to Apply:
Applicants need to decide on the equipment they require and ensure it is eligible for ACA by checking the Triple E product register before making the purchase. The ACA can then be claimed through the company’s return of income form (CT1).
