Uncover a hidden gem in the tax landscape designed to propel businesses towards energy efficiency – the Small Business Energy Incentive (SBEI).
To qualify for this incentive, you’ll need to navigate a few requirements. However, if you’ve invested in depreciable assets between 1 July 2023, and 30 June 2024 (the bonus period), you could be eligible for a bonus deduction of 20% on the acquisition cost of up to $100,000 of eligible equipment. This bonus is in addition to your regular claims, reminiscent of the investment allowance days, but now with a $20,000 cap. That’s potentially an extra $9,400 in your coffers, making it a lucrative opportunity worth exploring.
The SBEI caters to businesses with an annual turnover below $50 million. Eligibility hinges on investments in specific depreciable assets during the bonus period, under the following criteria:
- Introducing a new, reasonably comparable asset in the market that uses fossil fuel.
- Upgrading to a more energy-efficient asset than the one being replaced.
- Opting for an asset that surpasses the energy efficiency of a new, reasonably comparable asset in the market if not a replacement.
Assets eligible for the bonus encompass energy storage, time-shifting or monitoring assets, as well as those enhancing the energy efficiency of other assets. Even second-hand assets qualify, provided a comparable new asset exists in the market.
It’s important to note that the SBEI exclusively targets businesses. For instance, swapping gas appliances with electric ones in a rental property wouldn’t meet the criteria. Additionally, solar panels and motor vehicles are excluded from the bonus deduction.
Conclusion
If you suspect you qualify for this incentive, don’t hesitate to reach out to us for guidance on making your claim.
