Section 12L Tax Incentive deadline for businesses extended to December 2030: A statement by the Deputy Minister of Electricity and Energy, Samantha Graham-Maré
I am pleased to inform all businesses that they now have more opportunities to invest in energy efficiency measures, as the Section 12L Tax Incentive, which was originally set to expire on 31 December 2025, has been extended by five years to 31 December 2030.
The Deduction for Energy-Efficiency Savings Regulation, in Section 12L of the Income Tax Act 58 of 1962, was promulgated in 2013 and commenced in 2015. It offers deductions for businesses to invest in energy efficiency measures that can reduce costs and enhance efficiencies in building management. Since its implementation in 2015 to date, 34.47 TWh, worth over R29 billion, have been saved.
The initial expiry date for this incentive was 31 December 2019, but in February 2019, this was extended by three years to 31 December 2022. In February 2022, it was extended by a further three years to 31 December 2025. This was due to the strong demand from the private sector for initiatives that could help avert the impact of load-shedding and drive efficiencies in their business operations.
Energy efficiency is about being resource smart: making energy go further through innovative solutions, such as efficient machinery and office appliances, LEDs for lighting, insulation for heating and cooling, and process heat recovery and optimisation. The benefits are not only cost- saving, but also reducing demand, which in turn leads to entire system efficiencies, better energy security for the country, and reduced C02 emissions. I encourage all businesses to make use of this tax rebate, especially with the deadline of 7 December 2025 for Energy Performance Certificates in certain classes of buildings. Energy efficiency is not just a nice-to-have; it is a smarter way of life that can also be applied to waste and water efficiency. Businesses that critically examine their resource use and its impact on business processes and profitability are those that will be sustainable in the long term.
Those interested in accessing the tax incentive can visit https://sanedi12ltax.org.za and follow the steps.
For media enquiries:
Marcellino Martin, Media Liaison in the Office of the Deputy Minister of Electricity and Energy
Cell: 082 721 3362
E-mail: Marcellino.martin@dee.gov.za
Tsakane Khambane, Spokesperson in the Ministry of Electricity and Energy
Cell: 082 084 5566
E-mail: Tsakane.Khambane@dee.gov.za
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