What is ECA?
ECA stands for Enhanced Capital Allowance. The scheme is designed to encourage businesses to invest in high-performance energy-saving equipment to help reduce carbon emissions, which contributes to climate change.
It is a straightforward way for businesses to improve their cash flow through accelerated tax relief on the cost of lighting products, transport to site and cost of installation.
Did you know?
You can claim 100% tax back against taxable profits in the 1st year when you buy ECA approved products. ECA allows you to claim tax back in one year instead of waiting 5 years through general ‘Capital Allowance’.
If you are claiming 19% Corporation tax back, you will receive the full 19% back in full in the 1st year instead of tax back being spread over a 5-year period.
What lighting qualifies for ECA?
LED lighting qualifies for funding, however, certain lighting products are not specifically itemised on the ECAs approved product list due to the fast-moving nature of lighting technology. White Light Emitting Diode (LED) Lighting Units and High-Efficiency Units categories are covered, but eligible products are not listed. Each ROBUS product must repeat a working application process to be approved for the ECA scheme.
ROBUS have 34 ECA approved products to choose from including the VULCAN & SULTAN LED Corrosion Proof, CAESAR LED Battens, DISK LED High Bays, PRISMOID LED Linear High Bays, SPACE UGR<19 LED Panels, STREEX LED Streetlights, UNIVERSAL PIRs and Motion Detectors. See the full list below.
Additional benefits to ECA Approved Products
You may feel like ECA approved products are a more expensive choice but, 9 times out of 10, choosing cheaper lighting optionsend up costing you more in the long run. Lighting costs are generally the 2nd highest cost for a business, next to staff overheads. By spending more on quality ECA approved LED light fittings now, you will make huge savings on maintenance and labour costs because these fittings don’t need to be replaced as often as non-ECA approved fittings and they last longer.
For more information on the ECA ‘Enhanced Capital Allowance’ Scheme please visit https://www.carbontrust.com/resources/faqs/services/energy-technology-list/