Accelerated Capital Allowance (ACA)

About this scheme

The Accelerated Capital Allowance (ACA) is a tax incentive scheme administered under Irish tax law that encourages investment in energy efficient equipment. It is based on the standard Wear and Tear Allowance for capital plant and machinery, but instead of spreading the deduction over eight years, it allows the full cost of qualifying equipment to be deducted from taxable profits in the year of purchase. Companies, sole traders and farmers paying corporation tax or income tax on trading or professional income in Ireland can avail of it. Equipment must be new, used in a trade, not leased or hired out, and included on the Triple E register during the relevant accounting period. Expenditure must meet minimum thresholds set for each technology category. For electric and alternative fuel vehicles, the allowance is based on the lower of the vehicle's actual cost or €24,000. No pre-approval is required; normal self-assessment tax rules apply, and the allowance is claimed via the CT1 return of income form. Businesses unsure of eligibility are directed to their tax advisor or revenue.ie.

Who can apply

• Must be a company, sole trader or farmer that pays corporation tax or income tax on trading or professional income in Ireland
• Equipment must be new and bought for use in a trade
• Equipment cannot be leased, let or hired to any person, body or organisation
• Equipment must appear on the published Triple E list at some stage during the accounting period in which it was first provided
• Expenditure on the technology must equal or exceed the minimum amount set for the relevant technology class (see Triple E categories and criteria page)

How to apply

1. 1Decide on the equipment required.
2. 2Ensure the equipment model is eligible for ACA by checking the Triple E product register before making the purchase.
3. 3Claim the ACA through the company's return of income form (CT1), using the dedicated ACA field alongside the standard capital allowances entry field.