Enhanced Capital Allowance (ECA) – Businesses

2. Businesses

The Enhanced Capital Allowance (ECA) scheme for energy-saving technologies rewards businesses that invest in energy-efficient technology. It recognizes that such investments help businesses to become more profitable in the long run, by reducing overall energy spend, lowering overheads and improving cash flow.

To qualify for an Enhanced Capital Allowance, a business must invest in energy-saving products that meet the ETL (Energy Technology List) criteria. The allowance lets a business set 100% of their asset costs against taxable profits for the first year.

Only energy-saving products specified by the ETL, such as condensing water heaters, are eligible for an ECA. The recognized list of products is managed by the Carbon Trust, on behalf of the UK government.

More information can be found at the following website:
www.gov.uk/guidance/energy-technology-list