Environmental Clean Technologies Secures $1.47 Million R&D Tax Incentive Rebate
ECT (ECT) Share Update September 2024 Sunday 29th
Environmental Clean Technologies Receives Significant R&D Tax Rebate
Environmental Clean Technologies Limited (ASX: ECT) has announced that it has received a substantial R&D Tax Incentive rebate of $1,473,169 from the Australian Taxation Office (ATO).
Instant Summary:
- ECT receives $1.47 million R&D Tax Incentive rebate.
- Funds will support strategic initiatives including COLDry technology.
- Rebate includes interest and deductions for outstanding PAYG.
Rebate Details
Environmental Clean Technologies Limited (ECT) is pleased to announce that it has received its FY24 R&D Tax Incentive rebate from the Australian Taxation Office (ATO), amounting to $1,473,169. After accounting for interest and deducting current PAYG outstanding, the net amount remitted to the company's bank account is $1,418,952.
The R&D Tax Incentive program, managed by AusIndustry, supports eligible research activities by providing a 43.5% rebate. For companies incurring a tax loss, a cash rebate is provided, while those with taxable income receive a tax offset.
Use of Funds
These funds will be instrumental in financing ECT's strategic initiatives. The company plans to use the rebate for the commercial demonstration of its COLDry technology, which is a key focus area. Additionally, the rebate will support working capital and the repayment of a loan to Invest Victoria.
This announcement has been authorized for release to the ASX by the Board of ECT.
The receipt of the R&D Tax Incentive rebate is a positive development for ECT. The funds will bolster the company's financial position, enabling it to advance its strategic initiatives without the immediate need for additional capital raising. This could potentially enhance investor confidence and positively impact the company's stock price.
Investor Reaction:
Analysts are likely to view this announcement favorably as it strengthens ECT's financial health and supports its ongoing projects. The rebate demonstrates the company's ability to leverage government incentives effectively, which is a positive signal for long-term investors.
Conclusion:
Investors should keep an eye on ECT's progress with its COLDry technology and other strategic initiatives, as the successful deployment of these projects could significantly enhance the company's market position. The R&D Tax Incentive rebate is a promising step forward for ECT.