Renewable tax breaks for businesses – Summarized
- From 1 March 2023, business will be able to reduce their taxable income by 125% of the cost of an investment in renewables.
- The adjustment incentive will only be available for investments brought into use for the first time between 1 March 2023 and 28 February 2025
- The incentive will be available for two years.
- Business will be able to claim a 125% deduction in the first year for all renewable energy projects with no threshold on generation capacity.
Example:
A renewable energy investment of R1 million would qualify for a deduction of R1.25 million. Using the current corporate tax rate, this deduction could reduce the corporate income tax liability of a company by R337,500 in the first year of operation.
Rooftop Panel Tax Incentive – Summarized
- The rebate applies to qualifying solar PV panels that are brought into use for the
- first time in the period from 1 March 2023 to 29 February 2024
- Only applies to the cost of the solar panels and not the inverter, batteries, or
- installation costs.
- Only new and unused panels will be considered.
- Portable panels will not qualify.
- The panels can be installed as part of a new system, or as an extension of an
- existing system.
- Only solar PV panels with a minimum capacity of 275W per panel qualify for
- the rebate.
- Tenants who install a solar system will be able to claim the rebate. Similarly, if
- someone pays for the solar panels at their parents’ or children’s home the
- purchaser should be able to qualify for the incentive.
- Individuals will be entitled to claim a 25% credit on the cost of their solar panel expenses up to a maximum of R15 000 per person.
Documentation required to claim:
- VAT invoice that indicates the cost of the solar PV panels separately from other items
- Proof of payment
- Certificate of compliance for the installation issued from 01 March 2023 – 24
For more information, please email: kirsten@resolutewealth.co.za
