Online backup provider keepITsafe is a tangible example of how investing in the Sustainable Energy Authority of Ireland’s ACA scheme can reap cash-tax benefits.
keepITsafe announced today that since purchasing €80,000 worth of energy-efficient servers, it has reduced its annual data centre running costs by 30pc.
Commenting on keepITsafe’s participation in the scheme, Energy Minister Eamon Ryan TD said: “keepITsafe has shown that significant savings can be made. Not only are they reducing their costs, but their whole business operation now runs more efficiently.”
“The Accelerated Capital Allowance Scheme allows companies to move towards implementing more energy-efficient practices and more importantly, save money,” added Eoin Blacklock, managing director, keepITsafe.
With the existing Capital Allowances tax structure, when money is spent on capital equipment, companies can deduct the cost of this equipment from their profits proportionally over a period of eight years. However, the Accelerated Capital Allowance scheme is an incentive for companies to invest in energy-efficient technology, as it allows them to write off 100pc of the purchase cost of qualifying energy-efficient equipment in the year of purchase, rather than over eight years.
The following table offers a basic list of the technology classes and the minimum amount companies need to spend to be eligible for the scheme. For more detailed information, visit the SEAI website.
|Class of Technology||Minimum Amount|
|Motor and Drives||€1,000|
|Building Energy Management Systems||€5,000|
|Information and Communications Technology (ICT)||€1,000|
|Heating and Electricity Provision||€1,000|
|Process and Heating, Ventilation and Air-conditioning (HVAC) Control Systems||€1,000|
|Electric and Alternative Fuel Vehicles||€1,000|
|Refrigeration and Cooling Systems||€1,000|
|Catering and Hospitality Equipment||€1,000|
Equipment eligible for the ACA can be found on the specified products list on the SEAI website.
To read a more in-depth article about the ACA scheme recently published on Siliconrepublic, click here.