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Income Tax Act, 1962 (Act 58 of 1962)

Regulations in terms of section 12L of the Income Tax Act, 1962, on the allowance for energy efficiency savings

6. Limitation of allowance

 

 

(1)        For the purpose of this regulation—

 

"co-generation"

means combined heat and power;

 

"combined heat and power"

means the production of electricity and useful heat from a fuel or energy source which is a co-product, by-product, waste product or residual product of an underlying industrial process;

 

"energy conversion efficiency"

means the difference between the useful heat and equivalent kilowatt hours of energy output and the equivalent kilowatt hours of input energy expressed as a percentage;

[Definition inserted by regulation 2(b) of Notice No. R. 186 dated 6 March 2015]

 

"energy from waste"

[Defintion deleted by regulation 2(a) of Notice No. R. 186 dated 6 March 2015]

 

"renewable sources"

means—

(a)        biomass;

(b)        geothermal;

(c)        hydro;

(d)        ocean currents;

(e)        solar;

(f)        tidal waves; or

(g)        wind;

 

"waste heat"

[Defintion deleted by regulation 2(a) of Notice No. R. 186 dated 6 March 2015]

 

"waste heat recovery"

[Defintion deleted by regulation 2(a) of Notice No. R. 186 dated 6 March 2015]

 

(2) A person may not receive the allowance in respect of energy generated from renewable sources other than energy generated from combined heat and power.

[Subregulation (2) substituted by regulation 2(c) of Notice No. R. 186 dated 6 March 2015]

 

(3) A person generating energy through a captive power plant may not receive the allowance unless the energy conversion efficiency of the plant is greater than 35 per cent.

[Subregulation (3) substituted by regulation 2(c) of Notice No. R. 186 dated 6 March 2015]