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Author Topic: Small Business and FIT  (Read 1986 times)
mitchino
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« on: March 30, 2010, 07:07:21 PM »

I've been wondering about feed in tarrifs and small businesses - how do the figures work?

Could I obtain an interest free loan from the Carbon Trust to have PV installed, then claim 100% of the installation costs back against tax under the enhanced capital expenditure rules in the same year, and then receive the FIT for used and exported units? Would the FIT then be tax free?



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Ted
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« Reply #1 on: March 30, 2010, 09:59:24 PM »

Last time I looked in any detail at the Carbon Trust 0% loans they were quite restricted in that you can only borrow a defined amount based on an independently assessed level of carbon saving.

For example, saving 5 tonnes of CO2 (10,000 kWh a year of grid electricity) allows you a loan of about 3500 and this has to be repaid over a max of 4 years. A PV system to achieve that level of saving would cost about 50k so the loan would only cover a small fraction of the capital cost.

Any non-domestic system will have to pay tax on the FITs, in the same way that any other income would be.
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swc123
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« Reply #2 on: April 15, 2010, 12:15:08 PM »

On the same subject, does anyone know what the situation is with regard to small businesses that have received grant funding to install their wind turbine and their eligibility for FITs.  I am specifically thinking about businesses who have received SRDP funding in Scotland.  It did mention State Aid compliance in the consultation response but cannot find any guidance anywhere.
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Ted
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« Reply #3 on: April 15, 2010, 12:45:19 PM »

There's no clear guidance other than the DECC statement that the situation will be monitored on a case by case basis, but who is to do the monitoring or how decisions are taken is left unexplained.

Suggest you contact your regional office for specific advice: http://www.scotland.gov.uk/Topics/farmingrural/Agriculture/AOcontacts/contacts
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swc123
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« Reply #4 on: April 15, 2010, 01:30:45 PM »

Thanks for that Ted, I am awaiting a response from them.
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Ivan
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« Reply #5 on: May 11, 2010, 05:13:27 PM »

as far as I know, Enhanced Capital Allowances DON'T cover PV.

However, for a couple of years now, you've been able to claim the 50k small business allowance against the cost of equipment and machinery - and that can include a PV system.
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