Pretoria - The Department of Energy has released for public comment regulations that provide for an allowance for energy efficiency savings.
The Tax Allowance for Energy Efficiency Savings regulations stipulate that any company holding a certificate that proves that the energy savings are genuine can submit the certificate to SARS (South African Revenue Service) and claim the allowance.
"The regulations will be released for public comment for a period of 60 days from today," said the department in a statement on Friday.
In 2009, National Treasury introduced several measures, mainly in the form of tax allowances, to promote investment towards environmental ends, and improve the technology, infrastructure and design used by companies in the building of their facilities and plants.
Ways in which governments abroad influence energy and climate policy is through taxation with the main instrument used being the Income Tax Act of 1962.
"Section 12L of the Income Tax Act specifies that the Department of Energy will write a regulation that specifies how the energy savings certificates will work and within which institutional framework. These regulations are designed to enable the Section 12L of the Act to be accomplished," it said.
The energy savings have to be proven by means of a measurement and verification report undertaken by a body accredited by the South African National Accreditation System (SANAS) that is also registered with the South African National Energy Development Institute (SANERI).
"The Income Tax Act stipulates that any company that has benefitted from the allowance may benefit from any other South African energy savings scheme in the same year." - BuaNews
