National Treasury published section 12L on 8 November 2013 in Government Gazette No. 37019.
This puts into operation deductions of energy efficiency savings in terms of the Income Tax Act of 1962.
This long-awaited announcement was welcomed by the Certificated Measurement & Verification Professionals (CMVP) industry that has been advising clients to prepare for the imminent release for some time.
The 12L allows deductions calculated at 45 cents per kilowatt hour or kilowatt hour equivalent of energy efficiency savings. A person claiming the deduction must obtain a certificate issued by an institution, board or body prescribed by the regulations. Such bodies can be found on the South African National Accreditation System (SANAS) website www.sanas.co.za.
To claim for energy efficiency savings from National Treasury the Regulation requires that a baseline must be set at the beginning of an assessment year with a reporting period of the energy use at the end of the year of assessment and that such savings calculations meet the full criteria and methodology used to calculate energy efficiency savings. No double dipping is allowed, which means concurrent benefits in respect of the energy efficiency savings may not be received.
For more information contact www.energytrainingfoundation.co.za