Brian Hayes (Dublin South West, Fine Gael)
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Question 519: To ask the Minister for Communications, Energy and Natural Resources the specific energy efficient equipment that is eligible for companies to buy that is covered by the accelerated capital allowances scheme as set out in Building Ireland's Smart Economy - A Framework for Sustainable Economic Renewal 2009-2014. [17618/09]

Eamon Ryan (Dublin South, Green Party)
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The scheme of Accelerated Capital Allowances for Energy Efficient Equipment (ACA scheme) was introduced in section 46 of the Finance Act 2008. This provision allowed companies to claim the full cost of qualifying equipment against their Corporation Tax liabilities in the year of purchase of the equipment. Normally such costs would be claimed over a period of eight years. This tax incentive, together with the information on energy efficient products provided under the scheme, is intended to encourage businesses to look to the full life-cycle cost of equipment, particularly the cost of energy used, rather than simply the initial capital outlay.

The ACA scheme initially covered five classes of technology. These were lighting, lighting controls, motors, variable speed drives and building energy management systems. These five technologies were recommended by Sustainable Energy Ireland (SEI) as having the potential to deliver the most energy savings to business. SEI developed energy efficiency criteria for each of these classes of technology and the specific products satisfying these criteria are listed in the Taxes Consolidation Act 1997 (Accelerated Capital Allowances for Energy Efficient Equipment) Order 2008 (S.I. 399 of 2009) and on SEI's dedicated ACA database and website at www.sei.ie/aca.

Section 37 of the Finance (No. 2) Act 2008 significantly expanded the range technologies covered by the scheme. Four broad technology groups were added. These are Information and Communications Technology, Heating and Electricity Provision, Process, Heating, Ventilation & Air Conditioning, and Electric & Alternative Fuel Vehicles. The complete list of technologies, which are now covered by the ACA scheme, is set out in the following table. SEI has since developed energy efficiency criteria for 24 classes of technology within the additional groups. Manufacturers and distributors of products which fall within these classes of technology have been invited to apply for inclusion in a further Order that I will make in the summer. Those products will then be listed on SEI's database and businesses will be able to include the cost of their purchase of such equipment in their Corporation Tax returns for this year.

Table: Technologies covered by the ACA scheme