Latest green IT hardware to offer tax breaks now listed online

26 Apr 2010

Latest list of energy-efficient equipment that qualifies for tax breaks is now online for public consultation.

The list now covers 5,500 items and is updated on a quarterly basis. The latest list has been published at the website of Sustainable Energy Authority of Ireland (SEAI). It will be available for three weeks to allow consumers and industry to give their feedback.

Companies buying equipment from this list qualify for the Accelerated Capital Allowance scheme, a tax incentive whereby they can write off the entire cost of the equipment from their tax bill in the first year, instead of spreading it over eight years, as with other purchases.

Hannes Mac Nulty, programme manager with SEAI, made the announcement at yesterday’s inaugural Green IT summit in Croke Park.

Best in class

IT hardware doesn’t qualify for the ACA list just by virtue of being energy efficient, says Mac Nulty. Any equipment that makes the grade is rated as the best in its class and as such can carry a heftier price tag than competing models.

“ACA equipment is highly energy efficient and would often cost more than traditional kit,” says Mac Nulty. “A company that would not normally have the money to buy it can now do so. The ACA scheme is a facilitator – by reducing your cash burden you have more money you can spend.”

Mac Nulty stressed that the evaluation was not intended to be an endorsement or accreditation of any vendor’s products. “You cannot be sold an ‘approved by SEAI’ product,” he says.

The ACA scheme was introduced two years ago and is operated by the Departments of Finance and Energy. Last year, the ICT hardware category was introduced for the first time and it currently includes servers, storage systems, precision cooling and dissipation systems, uninterruptible power supplies and power management systems.

This year, more product types will be added to the ICT category, including blade servers, routers, hubs and firewalls. Software will also be included for the first time, with a focus on reducing energy consumption, such as virtualisation tools.

Mac Nulty says claiming a purchase under the ACA scheme is easy. Companies check that the product is on the list and procure it as they normally would. The equipment supplier must record the product details on the invoice exactly as they are listed on the ACA site. The company then claims the allowance on its annual tax return form.

By Gordon Smith

Photo: The latest list of energy-efficient equipment that qualifies for tax breaks is now on the Sustainable Energy Authority of Ireland website

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Gordon Smith was a contributor to Silicon Republic