A new tax scheme to encourage companies to invest in energy saving systems has been introduced by the British government.LONDON, England, UK, 2001-08-01 [SolarAccess.com] A new tax scheme to encourage companies to invest in energy saving systems has been introduced by the British government. The ‘UK Finance Act 2001′ includes a package of measures to help the United Kingdom reduce its emissions of greenhouse gases, and will offer businesses a cash-flow incentive and assistance to reduce energy needs in both plant facilities and machinery. An allowance of 100 percent in the first year for energy-saving equipment will take effect next month, ensuring that investments made on since April in designated equipment can qualify for the enhanced capital allowances. Under the scheme, companies can allocate their total expenditures on designated equipment against taxable profits of the period in which the investment is made. A criteria list contains energy-saving standards that must be met for each technology and the Energy Technology Product List contains lists of products that are accepted under those criteria. The Enhanced Capital Allowance Scheme was first announced by the Chancellor of the Exchequer, Gordon Brown, in November 1999. That measure included support for investments in low carbon technologies under the climate change levy package and included a fund of £50 million for renewable energy and energy efficiency. In December 1999, the government issued a consultation document to discuss energy efficiency measures under the climate change levy, which proposed that the ECA scheme cover cogeneration (CHP), boilers, motors, variable speed drives, lighting, refrigeration, pipe insulation materials and thermal screens. Other technologies can be added. The full list of qualifying products was published in April of this year, but no claims could be made until the legislation came into force with the passage of the 2001 Finance Bill through Parliament. The scheme for enhanced capital allowances was modeled on a similar system operating in the Netherlands.