As from 1 January 2016, Section 12b of the Income Tax Act (South Africa) was amended from a three-year (50% – 30% – 20%) accelerated depreciation allowance on renewable energy to an even quicker depreciation allowance of ONE year (100%).  

In 2023, this section was updated and replaced by section 12BA, this incentive is an enhancement
of the existing renewable energy tax incentive.

This is a temporary incentive that enhances the current renewable energy tax incentive available in section 12B of the Income Tax Act. The incentive is only available for two years from 1 March 2023 until and including 28 February 2025. The incentive’s temporary nature aims to encourage businesses to respond sooner by investing into assets used for renewable energy production.

The temporary incentive increases the amount claimable from 100% to 125%.