Claiming an Enhanced Capital Allowance (ECA)An ECA is claimed through a businesses income or corporation tax return in the same way as any other capital allowance.However there are different types of supporting evidence needed dependent on whether your product is in a non-listed or listed technology area.Listed technology areasProducts in all other supported technology categories need to be listed on the Energy Technology Product List at the time of purchase in order to be eligible for an ECA.Claims should be based on the invoice value of the eligible product. Claims may include additional direct costs such as the transportation and installation of equipment, and professional fees, although this should be discussed with your tax advisor or HMRC in advance.If the invoice value of the eligible equipment cannot be identified (e.g. if the eligible equipment is a component of a larger system you have purchased such as a qualifying motor which sits inside a non-eligible compressor), then the tax relief should instead be based on the claim value. The relevant claim values to use are included alongside the relevant eligibility criteria.All the ETA Biomass Boilers we install are eligible for an ECA. ECA772 Biomass boilers and roomheaters (PDF, 410 KB)If the invoice value of the eligible equipment cannot be identified (e.g. if the eligible equipment is a component of a larger system you have purchased such as a qualifying motor which sits inside a non-eligible compressor), then the tax relief should instead be based on the claim value. The relevant claim values to use are included alongside the relevant eligibility criteria.A Combined Heat and Power scheme will be eligible for an ECA if a DECC Certificate of Energy Efficiency has been obtained. For more information on this, please see the Combined Heat and Power eligibility criteria (PDF, 80KB).
The Enhanced Capital Allowance (ECA)
Eligibility Criteria and Claim ValuesFor a product to be eligible for ECAs it must meet specific energy saving eligibility criteria. There are several different technology categories included on the ECA scheme, many of which are sub-divided into sub-technology categories.The eligibility criteria for each category is reviewed each year and updated to reflect technological and market developments. New technology categories can be added to the scheme each year following approval by the Department of Energy and Climate Change (DECC), Her Majesty’s Revenue and Customs (HMRC) and the Treasury.As well as determining eligibility for an ECA, the criteria can be used by businesses and manufacturers to enhance specifications and aid product development.The current eligibility criteria and claim values can be found for each specific technology area via Browse ETL. The full list is published as Energy Technology Criteria List 2014 (PDF)