As Ireland takes steps toward a greener future with the Climate Action Plan 2021, businesses have a unique opportunity to reduce tax liabilities and contribute to a sustainable future through the SEAI Accelerated Capital Allowance (ACA).
In this article we will shed light on this valuable incentive designed to make electric vehicles (EVs) and charging points more affordable for businesses.
The ACA initiative, a part of the Climate Action Plan by Zero Emission Vehicles Ireland, supports the goal of having 945,000 EV’s in Ireland by 2030. For businesses considering the switch to electric, the benefits are substantial:
· A 74% reduction in fleet costs compared to new diesel engine cars.
· Lower motor tax rates (as low as €120).
· Reduced maintenance costs.
· A positive impact on the environment.
Understanding the ACA scheme is crucial for businesses looking to capitalise on these benefits. The scheme, based on the Wear and Tear Allowance for business investments, allows businesses to deduct the full cost of purchased EV equipment from their profits in the year of purchase. This translates to significant income tax savings for business owners, sole traders, and farmers.
To be eligible for the ACA scheme, businesses must adhere to specific criteria, including using new equipment for business purposes, accounting for the equipment in the year it was provided, and meeting the minimum spend requirements.
Applying for Accelerated Capital Allowances on electric cars is a straightforward process. Businesses can request an application form from the Sustainable Energy Authority of Ireland (SEAI) and check the eligibility of their chosen equipment using the Triple E product register. The application is then submitted with the business's CT1 form (return of income).
The benefits of incorporating electric vehicles into your business fleet go beyond tax savings. By participating in the SEAI ACA scheme, businesses can:
· Reduce Costs: Despite the initial investment, EVs prove more cost-effective over time, with lower maintenance and running costs compared to traditional vehicles. EV’s are generally cheaper to maintain, making them a practical and sustainable choice for businesses looking to cut operational costs.
· Future-Proof Your Business: With the world moving towards an electric vehicle future, embracing EVs now positions your business as a forward-thinking leader, contributing to a sustainable and resilient future.
In collaboration with the SEAI, Epower encourages businesses to explore the benefits of the ACA scheme, making a positive impact on both their bottom line and the environment. By adopting electric vehicles and charging points, businesses can align with the growing demand for sustainable practices and position themselves as leaders in the evolving landscape of clean and efficient transportation.
Ready to take the next step towards greener living?
Contact us today to explore how you can make the change to electric driving and a more sustainable tomorrow.