The Climate Change Levy (CCL) and Enhanced Capital Allowance (ECA) Scheme

This comprehensive document, produced by Brook Crompton, outlines the UK Government's Climate Change Levy and Enhanced Capital Allowance (ECA) scheme. It details how businesses can reduce energy costs and carbon emissions through tax incentives for energy-efficient electrical motors and equipment.

Key Points

  • Introduced in 2001, the Climate Change Levy is a tax on non-domestic energy use to incentivize energy efficiency.
  • AC electric motors and variable speed drives are among the key technologies covered under the ECA program.
  • Choosing ECA-qualified motors can yield substantial savings in energy costs and taxes, improving ROI in under a year.
  • Products must meet specific efficiency standards and be listed by DEFRA to qualify.
  • The Enhanced Capital Allowance (ECA) scheme allows 100% tax relief in the first year on qualifying energy-saving investments.
  • Brook Crompton’s high-efficiency motors meet ECA eligibility and are listed on the UK Energy Technology List.
  • The guide includes case studies and fixed value tables for various motor types and specifications.
  • The guide was originally published in 2002 and reflects UK government policy and tax legislation as of that year.