The government has updated the list of energy saving technologies that qualify for enhanced capital allowance tax benefits, which covers everything from lighting to boiler equipment.
The Energy Technology List (ETL) is a government-managed list of energy efficient equipment and machinery, such as boilers, electric motors, and air conditioning and refrigeration systems that qualify for full tax relief.
Any business that pays income or corporation tax can claim 100 per cent first year capital allowance on a product if it is on the ETL at the time of purchase. In other words, the capital cost of the technology can be written off against taxable profits in the year the purchase was made.
A number of changes to the list, announced as part of the 2017 Autumn Budget, will come into force on 22 March.
Three new sub-technologies for evaporative air coolers, saturated steam to electricity conversion equipment and LED lighting modules for backlit signs have been added, while two technologies for biomass-fired warm air heaters and rapid steam generators have been removed.
Qualifying criteria for a further eight categories have also been revised.
As well as a tax saving initiative, the ETL is also a trustworthy source of information for procurement because all technologies on the list are independently tested and verified.
Updated guidance to the scheme is available here.