Accelerated Capital Allowances
The ACA is a tax incentive for companies paying corporation tax and aims to encourage investment in energy efficient equipment. The purpose of the ACA scheme is to encourage businesses to purchase plant and machinery that is highly energy efficient and thus make significant savings on energy costs and reduce carbon emissions. The ACA offers an attractive incentive whereby it allows companies to write off 100% of the purchase value of qualifying energy efficient equipment against their profit in the year of purchase.
Solar PV qualifies for the ACA scheme, this is an attractive investment as is offers significant saving on your electricity bill while the cost of purchase has been written off your tax bill.
Home Renovation Incentive
The Home Renovation Incentive (HRI) scheme enables homeowners or landlords to claim tax relief on repairs, renovations or improvement work that is carried out on their main home or rental property by tax-compliant contractors and that is subject to 13.5% VAT.
The HRI is paid in the form of a tax credit at 13.5% of qualifying expenditure, which can be set against your income tax over 2 years. This effectively reduces the rate of VAT to zero on qualifying work, up to a value of €30,000.
The Home Renovation Incentive has been extended until 31 December 2018.
The qualifying work must cost at least €4,405 before VAT at 13.5%, which comes to a total of €5,000 with VAT included. You will only get the tax credit in relation to a maximum of €30,000 (before VAT) during the period covered by the HRI.
Claiming the credit
You can claim the HRI tax credit after the end of the tax year if your qualifying expenditure has reached the minimum amount of €4,405 before VAT (a total of €5,000) and you have paid income tax. Any unused tax credit can be rolled over into the following year.
In general, the tax credit is payable over the 2 years following the year in which the work is carried out and paid for. If you are on PAYE, your HRI tax credit will be divided evenly across your pay dates for each of the 2 years that it is payable. If you are a self-assessed taxpayer, it will be included in your self-assessment over 2 years, half the tax credit each year.
Now is a great time to avail of the €1250 grant available on solar panels; the grant application process is a simple online form (Clean Energy Ireland will show you how to fill it out) and you will get a response before you commit to any works.
“Once the customer is happy with the proposed system and the grant has been processed, we’ll install the system for them. It takes about a day and a half ”, says Patrick “and we make sure that there is minimum disruption to the house; we’re spotlessly clean and have our own plumbers.” Fully insured and trained. “We stand over our work proudly; providing a written guarantee for all of our European manufactured products and all of our workmanship.”
We are SEAI (Sustainable Energy Authority of Ireland) approved installers: Better Energy Homes Scheme – Installer No. 13425
Log onto the SEAI website for an grant application:
Once the system is installed, the customer pays Clean Energy Ireland and gets their grant back from the government.
Save 70% on your Hot Water Bills with Solar Energy. “Our packages are excellent value for money; considerably cheaper than many of our competitors,” explains Patrick, “For your average three bedroom semi-detached home, after the grant has been applied prices would range from €2,700 for a two-panel kit to €3,300 for a three panel one. These prices include everything from panels and cylinder to labour, with all materials and taxes inclusive.”