As part of a concerted effort worldwide to reduce energy consumption, CO2 emissions and the impact of industrial operations on the environment, various regulatory authorities in many countries have introduced or are planning legislation to encourage the manufacture and use of higher efficiency motors.
Within the EU, various Capital Allowance Schemes encourage companies to purchase equipment incorporating premium-efficiency motors. For example, in the UK, the Enhanced Capital Allowances (ECA) Scheme provides a tax incentive to businesses that invest in equipment that meets published energy-saving criteria. The Energy Technology List (ETL) details the criteria for each type of technology, and lists those products in each category that meet them. It is managed by the Carbon Trust, on behalf of the Government, and has two parts:
The Energy Technology Criteria List (ETCL), which is reviewed annually to ensure that it reflects technological progress. It sets out the qualifying energy-saving criteria for each class of technology.
The Energy Technology List (ETL), updated at the start of each month lists the products and technologies that are eligible for an ECA.
The ETL also contains details of the maximum claim values for qualifying products which comprise a component in a larger piece of plant and machinery, which does not itself qualify for ECAs.
The key features of the scheme are:
- Open to all businesses that pay UK Corporation or income tax, regardless of size, sector or location.
- Provides 100% first-year capital allowances on investments in energy-saving equipment against taxable profits of the period of investment.
- All the products listed on the ETL must meet the energy-saving criteria, published in the ETL.
- Only spending on new and unused energy-saving equipment can qualify for ECAs.
- Capital allowances are available for spending "on the provision of" plant and machinery. This can include certain costs arising as a direct result of the installation of qualifying plant and machinery such as; transport of the equipment to the site, and some direct installation costs.
On 22 July 2009, Commission Regulation (EC) No 640/2009 implementing Directive 2005/32/EC states that in the EU, with the exception of some special applications, motors shall not be less efficient than the IE3 efficiency level as from 1 January 2015.
All HPC/Kaeser screw compressors above 5.5kW have the IE3 motor
fitted as standard and qualify for ECA.
For more information on our compressor range click here
For more information on Enhanced Capital Allowance Scheme click here