Discover more about the Solar tax incentive for businesses in South Africa. Effective from January 1, 2016, Section 12b of the Income Tax Act underwent a significant change, transitioning from a three-year accelerated depreciation allowance for renewable energy (50% – 30% – 20%) to a much faster depreciation period of just ONE year, allowing for 100% depreciation.
In 2023, this provision underwent further revision, giving rise to Section 12BA, an enhanced version of the existing renewable energy tax incentive. This enhancement is aimed at bolstering the adoption of renewable energy technologies.
However, it’s essential to note that this incentive is temporary in nature. It supplements the existing renewable energy tax incentive provided under Section 12B of the Income Tax Act but is only applicable for a limited period. From March 1, 2023, to February 28, 2025, businesses can capitalize on this temporary incentive to accelerate their investment into assets used for renewable energy production.
The key advantage of this temporary incentive lies in its increased claimable amount, elevating it from 100% to 125%. This enhancement serves as an additional incentive for businesses to expedite their transition towards renewable energy solutions, aligning with broader sustainability goals and potentially yielding significant tax benefits.
Unlock benefits for landlords by installing solar on rental properties. Sell electricity to tenants or decrease communal power usage. With reduced solar costs and rising Eskom rates, seize the opportunity for savings and profits now!
Unlock tax benefits for solar investments with no claim limits. Understand incentives for informed decisions. Reduce carbon footprint, slash energy bills, and boost profits with solar installations.
Solar energy installation can be expensive, covering assessment, design, plan, installation, and certification costs, besides the panels. InPower Solar simplifies the process, easing the burden and ensuring convenience.
Capitalize on Section 12B allowance for accelerated depreciation, reaching 125% from March 2023. Understand incentives for smart solar investments, ensuring accurate ROI calculations and informed decisions for businesses.
