Legislation

Enhanced Capital Allowance

EC motors are now recognised to meet the energy-saving criteria set by the Energy Technology List (ETL) and therefore qualify for an Enhanced Capital Allowance (ECA) claim. ebm-papst were the first to be approved and listed on the Energy Technology List. They can be found by clicking the link below.

Energy Technology List

EC motors are now recognised to meet the energy-saving criteria set by the Energy Technology List (ETL) and therefore qualify for an Enhanced Capital Allowance (ECA) claim. ebm-papst were the first to be approved and listed on the Energy Technology List. They can be found by clicking the link below.

There are three categories of Permanent Magnet Motors; motor only, motor with a separate drive or motor with an integrated variable speed drive. ebm-papst EC motors fall into the latter and are the easiest to select, install and use. The other two require the cost of installing and commissioning additional drives before the motor will operate.

The ECA scheme is a key part of the Government’s programme to manage climate change. It provides businesses with enhanced tax relief for investments in equipment that meet the published energy saving criteria.

100% first-year Enhanced Capital Allowances allow the full cost of an investment in designated energy-saving plant and machinery to be written off against taxable profits of the period in which the investment was made. The general rate of capital allowances for spending on plant and machinery is 20% a year on the reducing balance basis.

Further information on the Permanent Magnet Motor criteria and ECA can be found on a Carbon Trust document by clicking on the following link.

Carbon Trust Motors and Drives guide