Maximise your tax savings with solar energy before the 12B benefit expires
If your business is considering a renewable energy project, now is the ideal time to act. Under South Africa’s Section 12B of the Income Tax Act, businesses can deduct 125% of the cost of renewable energy projects from their taxable income. However, this valuable incentive is available for a limited period, so it’s crucial to act quickly to take full advantage.
What is the 12B tax benefit?
The 12B tax incentive allows businesses to deduct 125% of their capital investment in solar energy from their taxable income. This means your business can significantly reduce its tax liability while investing in a cleaner, more reliable energy future.
However, this benefit will expire for projects that are not operational by 28 February 2025. After this date, the deduction will likely revert to the standard 100%, meaning you will miss out on the additional 25% tax saving.
Maximise your savings before time runs out
The time-sensitive nature of the 12B benefit means that businesses need to act swiftly. By partnering with RenEnergy Africa now, we can ensure your solar project is completed before the deadline, allowing you to secure the full 125% deduction.
To give you an idea of the potential savings, here’s an example for a R10 million solar investment:
125% deduction: Your business would be able to deduct R12.5 million from its taxable income.
Tax saving: If your business is in the 27% corporate tax bracket, this results in a tax saving of R3,375,000 (27% of R12.5 million).
This not only reduces your tax obligations but also lowers the overall cost of your solar installation. Additionally, your business will enjoy long-term savings on energy costs and improved energy security.
"If your business is considering solar to reduce energy costs and secure reliable power, the time to act is now. With the 12B tax incentive expiring soon, waiting means missing out on a substantial financial benefit. By partnering with an experienced solar provider like RenEnergy Africa, you can lock in these savings while future-proofing your operations." – Juandré Pitout, Sales and Business Development Manager, RenEnergy Africa
Why choose RenEnergy Africa?
RenEnergy Africa has a proven track record of delivering high-quality solar energy projects on time and within budget. From planning and design to commissioning, we guide you through every step of the process, ensuring your project meets the deadlines to qualify for the 12B incentive. But remember, the longer you wait, the less likely it is that a solar developer will be able to complete the project in time.
Don’t wait – act now
With the 12B tax benefit set to expire soon, the window to act is rapidly closing. Ensure your business maximises this financial opportunity before it’s too late. Let’s work together to secure your business’s future with sustainable energy, while taking advantage of valuable tax benefits.
Contact us today to explore how solar energy can benefit your business and lock in these significant tax savings.