Income Tax Act, 1962 (Act No. 58 of 1962)
Regulations in terms of section 12L of the Income Tax Act, 1962, on the allowance for energy efficiency savings
SINCE it has become necessary to promote the efficient utilisation of energy to safeguard the continued supply of energy and to combat the adverse effects of greenhouse gas emissions related to fossil fuel based energy use on climate change;
AND SINCE energy efficiency saving may be considered as a potentially successful method of guarantee the efficient utilisation of energy;
AND SINCE the intended purpose of a carbon tax is to mitigate greenhouse gas emissions and also to utilise (recycle) some of the revenue to be generated from such a tax to finance incentives to advance the further efficient utilisation of energy;
THEREFORE a tax incentive as contained in section 12L of the Income Tax Act, 1962, and these Regulations is devised to encourage the efficient utilisation of energy.
BE IT THEREFORE ENACTED by Regulation as follows:—