As part of the capital allowance regime, it is possible to obtain 100% first year allowances for qualifying energy-saving and water efficient technologies under the Enhanced Capital Allowance (‘ECA’) scheme.
The ECA scheme will be updated to adopt the Waste Heat to Electricity sub-technology, and to remove the Packaged Chillers sub-technology. In addition, the qualifying criteria for some sub-technologies in both schemes will be amended. Subject to state aid approval, it is anticipated that these changes will be made in the Summer of 2015.
The ECA regime is of particular benefit to those businesses who have used their Annual Investment Allowance and are incurring capital expenditure on energy saving or water efficient technologies.