SAAEA 29 March, 2014.
Renewable energy and the 12L energy efficiency tax incentive
As an end-of-year bonus to the energy efficiency industry the long awaited “Regulations in terms of Section 12L of the Income Tax Act, 1962, on the allowance for energy efficiency savings” was promulgated and came into operation on 1 November 2013.
The allowance is for the purpose of determining the taxable income derived by any person from carrying on any trade in respect of any year of assessment ending before 1 January 2020. It stipulates that there must be allowed as a deduction from the income of that person an amount in respect of energy efficiency savings by that person in respect of that year of assessment…