Solar Grants

Solar Grants - Accelerated Capital Allowances

solar grants, solar pv

The ACA is a tax incentive for companies paying corporation tax and aims to encourage investment in energy efficient equipment. The purpose of the ACA scheme is to encourage businesses to purchase plant and machinery. It is highly energy efficient and thus make significant savings on energy costs and reduce carbon emissions. The ACA offers an attractive incentive, as it allows companies to write off 100% of the purchase value of qualifying energy equipment against their profit.

Solar Grants - PV Panels are qualifying for the ACA scheme. This is an attractive investment, offering significant saving on your electricity while the cost of purchase has been written off your tax bill.

Home Renovation Incentive

The Home Renovation Incentive (HRI) scheme enables homeowners or landlords to claim tax relief on repairs, renovations or improvement work. It includes everything that is carried out on their property by tax-compliant contractors and that is subject to 13.5% VAT. The HRI is paid in the form of a tax credit at 13.5% of qualifying expenditure. It can be set against your income tax over 2 years. This effectively reduces the rate of VAT to zero on qualifying work, up to a value of €30,000. The Home Renovation Incentive has been extended until 31 December 2018. The qualifying work must cost at least €4,405 before VAT at 13.5%. That comes to a total of €5,000 with VAT included. You will only get the tax credit in relation to a maximum of €30,000.

solar grants, solar pv

Claiming the Credit

You can claim the HRI tax credit after the end of the tax year if your qualifying expenditure has reached the minimum amount of €4,405 before VAT (a total of €5,000) and you have paid income tax. Any unused tax credit can be rolled over into the following year.

In general, the tax credit is payable over the 2 years following the year in which the work is carried out and paid for. If you are on PAYE, your HRI tax credit will be divided across your pay dates for each of the 2 years. If you are a self-assessed taxpayer, it will be included in your self-assessment over 2 years, half the tax credit each year. Find out more on: www.cleanenergyireland.ie