New tax incentive for drive technology

Facilities

ISSN: 0263-2772

Article publication date: 1 May 2000

Keywords

Citation

(2000), "New tax incentive for drive technology", Facilities, Vol. 18 No. 5/6. https://doi.org/10.1108/f.2000.06918eab.014

Publisher

:

Emerald Group Publishing Limited

Copyright © 2000, MCB UP Limited


New tax incentive for drive technology

Fact file available

Keywords Building industry, Technology, Conservation

Investments in variable speed drives could in the future be set against corporation or income tax bills in the year of purchase, according to a new government proposal on promoting energy efficient technology.

"This is excellent news for the building services industry," comments Geoff Pile, Sales Director of Alldales Drive Systems, one of the UK's leading suppliers of drives to the HVAC industry. "This should really accelerate the uptake of energy efficient technology in the HVAC sector."

"Alldales has produced a Fact File that helps users understand the benefits of variable speed drives in greater detail," Pile continues. "Using variable speed drives in pump and fan applications saves a minimum of 20 per cent, but can save as much as 90 per cent of the energy, compared to an application running at full load.

"Many motors run at full speed quite unnecessarily in systems regulated by valves, vanes and other restrictions. The variable speed drive, by contrast, ensures that no more energy than necessary is drawn by adjusting the speed of the motor to the required output."

In the consultation document, businesses are being asked how they can best use an extra £150 million being made available to improve energy efficiency and help the UK meet the targets it committed itself to at the 1997 UN conference on climate change in Kyoto, to reduce greenhouse emissions to 92 per cent of 1990 levels.

As the measure will reduce company tax, the payback time for the drive, which today is normally only 18-24 months based on energy savings alone, will be shortened even further.

It was anticipated that the Chancellor would make further announcements on the subject in the 2000 budget.

For further information contact: Geoff Pile, Alldales Drive Systems Ltd, Little Cross, Church Street, Warnham, W. Sussex RH12 3QS. Tel: +44 (0) 1403 218787; Fax: +44 (0) 1403 218833.