ECA Tax Relief

Polar Cooling Service are committed to using energy saving technologies and products. They help the environment and reduce running costs. This can make big savings. But you can save more by claiming ECA Tax Relief.

The Enhanced Capital Allowance Scheme enables businesses to claim 100% first year capital allowances on investments in energy saving technologies and products. Businesses are now able to write off the whole cost of their investment against their taxable profits of the period during which they make the investment. Enhanced Capital Allowances will encourage businesses to invest in low carbon technologies.

Energy Technology List

Certain technologies – if they listed on the Government’s Energy Technology List are entitled to ECA tax relief.

Heat pump – single split systems

Qualifying systems are eligible for a full ECA against the entire (though reasonable) installation cost. This can include piping, electrics, crane hire, commissioning etc… Investments in heat pumps can only qualify for ECAs if the heat pump components are specifically named on the Energy Technology Product List.

Heat pump – multi split systems

Qualifying systems are eligible for a full ECA against the entire installation cost as with single split systems. However, only combinations of 2 indoor units are registered with both Eurovent and the Carbon Trust – where other indoor units are added to the system, they do not qualify and must be shown as a separate part of the installation with associated costs. Investments in heat pumps can only qualify for ECAs if the heat pump components are specifically named on the Energy Technology Product List.

VRV Systems

VRV systems that meet the required performance (D energy label in both heating and cooling modes) may be included in this listing – however until testing standards show the connected indoor units, only the outdoor units and the associated costs will attract an ECA. The remainder of the system must be shown separately in the cost breakdown and will only qualify for a standard capital allowance.

For more details of ECA Tax Relief visit the ECA web page at http://etl.decc.gov.uk/etl