Tax incentives for customers of Dell’s green servers

7 Apr 2010

As part of the Budget 2010, the ACA (Accelerated Capital Allowance) scheme was expanded upon as a tax incentive for companies to invest in energy-efficient equipment. Yesterday, Dell took the lead as the technology firm with the most amount of approved servers that fit into this category.

Five Dell servers have been approved by the Sustainable Energy Authority Ireland (SEAI) under the Accelerated Capital Allowance (ACA) scheme, meaning that when purchased, companies can write off 100pc of the purchase value against their profit in year of purchase.

Dell explained that wear-and-tear allowances for machinery are generally given over an eight-year period at an annual rate of 12.5pc of the capital expenditure incurred, but in the case of approved energy-efficient equipment, this rate is accelerated and the entire allowance can be claimed in the first year in which the equipment is provided and used for the company’s trade.

Introducing the new green servers, Minister for Science, Technology and Innovation Conor Lenihan TD said: “A smart economy is a green economy and I commend Dell’s commitment to helping Irish business become more environmentally friendly through the use of greener technologies.

“The Government is committed to helping companies all over Ireland realise gains through the adoption of green practices and the Sustainable Energy Authority of Ireland Accelerated Capital Allowance Scheme is an example where business can realise monetary gains through investment in energy-efficient equipment while benefiting the environment.”

By Marie Boran

Photo: Dermot O’Connell, managing director, Dell Ireland, and Minister for Science, Technology and Innovation Conor Lenihan TD

Business & Leadership is hosting a briefing on The Green Economy this May. Learn more about this event.