Low-loss drives will qualify for 100% tax allowances

Capital allowances of 100% will be available on purchases of energy-efficient motors and variable speed drives from next April, when the Climate Change Levy (CCL) comes into force.

The Government has earmarked £150m of the £1bn it expects to raise from the levies on gas, electricity and coal bills, to support energy-saving measures such as the installation of VSDs and low-loss motors.

The criteria for judging whether equipment will be eligible for the enhanced capital allowances (ECAs) are being drawn up by the Government`s Energy Technology Support Unit, ETSU. Manufacturers and suppliers will be able to submit details of their products for possible inclusion in a list of eligible equipment, due to be published in November.

The implications of the CCL and the ECA for equipment supplies will be explained at a seminar on 22 June, being organised by the Government`s Energy Efficiency Best Practice Programme (EEBPP) and the trade associations covering this sector.

Those involved in developing the schemes will explain how they will operate and how business is responding so far. The free seminar, aimed at suppliers of motors and drives, will be held in Meriden, near Coventry. Details are available on 01235 433525.