Government grants, Public funds and tax relief for businesses

[Sammottram]

Hi Guys, I was just wondering if there are any government grants or public funds available to businesses investing in renewable energy technologies? Also, is there any tax relief for investing in such technologies?

Thanks

Sam

[rondurrans]

You could start by looking at:-

http://www.hmrc.gov.uk/businesses/capital-allowances.htm

http://www.energysavingtrust.org.uk/Take-action/Grants-and-savings

http://www.decc.gov.uk/en/content/cms/funding/funding_ops/funding_ops.aspx

[Ted]

Do you want to make and sell renewables or just use them?

Government grants cannot be used to pay for a renewables system itself (it can be used for other things; e.g. to finance a feasibility study) and still claim FiTs.  There is tax relief, but a fairly major change is about to happen from this coming April under both EIS and ECA.

http://www.businessgreen.com/bg/news/2037101/budget-2011-loss-investment-tax-relief-kick-nuts-solar
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ConsultationDocuments&propertyType=document&columns=1&id=HMCE_PROD1_031306

The Carbon Trust are probably the best place to get detailed advice.

[GavinA]

carbon trust is the website you seek... other than this one of course

[Sammottram]

Thanks for your help people! I've been looking at the enhnced capital allowances scheme and had another question for you, if I buy a biomass boiler for £12,000, with 25% corporation tax does that been that i'll reduce my tax bill at the end of the year of purchase by £3,000?

Thanks

[dhaslam]

Capital allowances only apply to  items  used for business purposes so it would have to be for a business premises as well as coming  under the specified category.    UK capital allowances are normally 20% so any  boiler should  be allowed that anyway.      I am not sure  how the  enhanced capital allowance works if the  amount allowed at 100% exceeds the profit, normally  the surplus would be carried forward to the next period.    In recent years extra capital allowances aren't  of much value for most companies because  after directors salaries  where isn't much profit left to use the accelerated allowances.   

http://etl.decc.gov.uk/etl