Energy Efficiency Tax Incentive

Energy Efficiency Tax Incentive

ROI
Energy Efficiency Tax Incentive Section 12L Of The Income Tax Act Comes Into Effect Submitted on Urban Earth Website by: Kathryn Kasavel, Monday, January 27, 2014 Section 12L of the Income Tax Act - Deduction in respect of energy efficiency savings- came into effect on the 1 November 2013. This tax incentive allows taxpayers to claim deductions of 45 cents per kilowatt hour, or kilowatt hour equivalent, of energy efficiency savings made against a baseline measured at the start of each year of assessment. This opportunity to claim tax deductions applies to all measured and verified savings achieved before 2020.For example, a company that achieves energy savings of 500,000 kWh in a year, would calculate their savings by multiplying 500,000 kWh by 45c which would equal a total of R225,000…
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