Page 62 - SAIT Compendium 2016 Volume2

Energy ef ciency INCOME TAX ACT: REGULATIONS ANd NOTICES Energy ef ciency PRAVIN JAMNADAS GORDHAN
Minister of Finance
REGULATIONS IN TERMS OF SECTION 12L OF THE INCOME TAX ACT, 1962, ON THE ALLOWANCE FOR ENERGY EFFICIENCY SAVINGS Promulgated under
GN R 971 in GG 37136 of 9 December 2013
I, Pravin Jamnadas Gordhan, Minister of Finance, in terms of section 12L (5) of the Income Tax Act, 1962 (Act 58 of 1962), in consultation with the Minister of Energy and the Minister of Trade and Industry, hereby make the regulations as set out in the Schedule hereto.
(Signed)
PRAVIN JAMNADAS GORDHAN
Minister of Finance
SCHEDULE
PREAMBLE
SINCE it has become necessary to promote the ef cient 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 ef ciency saving may be considered as a potentially successful method to guarantee the ef cient 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 nance incentives to advance the further ef cient 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 ef cient utilisation of energy.
BE IT THEREFORE ENACTED by Regulation as follows:-
De nitions
1. In these Regulations, any word or expression to which a meaning has been assigned in the National Energy Act, or the Income Tax Act bears the meaning so assigned, and-
‘accreditation number’ means an accreditation number contained in a certi cate of accreditation issued by the
South African National Accreditation System under section 22 (2) (b) of the Accreditation for Conformity Assessment, Calibration and Good Laboratory Practice Act, 2006 (Act 19 of 2006), to a measurement and veri cation body for the inspection, measurement, reporting and veri cation of energy ef ciency savings;
‘allowance’ means the amount allowed to be deducted in respect of energy ef ciency savings as contemplated in section 12L of the Income Tax Act;
‘baseline’ means baseline as de ned in the standard;
‘captive power plant’ means where generation of energy takes place for the purposes of the use of that energy solely by the person generating that energy;
‘certi cate’ means an energy ef ciency savings certi cate contemplated in section 12L (3) of the income Tax Act that is issued by SANEDI, comprising the content set out in regulation 4;
‘certi cate number’ means a unique traceable number allocated to a certi cate by SANEDI;
‘energy ef ciency’ means energy ef ciency as de ned in the standard;
‘energy ef ciency savings’ means the difference between the actual amount of energy used in the carrying out of any
activity or trade, in a speci c period and the amount of energy that would have been used in the carrying out of the same activity or trade during the same period under the same conditions if the energy savings measure was not implemented;
‘Income Tax Act’ means the Income Tax Act, 1962 (Act 58 of 1962);
‘measurement and veri cation’ means measurement and veri cation as de ned in the standard;
‘measurement and veri cation body’ means a body that is accredited by the South African National Accreditation
System in terms of section 22 of the Accreditation for Conformity Assessment, Calibration and Good Laboratory Practice Act, 2006 (Act 19 of 2006), for the purposes of inspection, measurement, reporting and veri cation of energy ef ciency savings;
‘measurement and veri cation professional’ means a natural person who performs measurement and veri cation of energy ef ciency savings under the auspices of a measurement and veri cation body;
‘National Energy Act’ means the National Energy Act, 2008 (Act 34 of2008);
‘report’ means a measurement and veri cation report that-
(a) contains a computation of energy ef ciency savings in respect of a person for a year of assessment; and
(b) is compiled by a measurement and veri cation professional in accordance with the criteria and methodology
contained in the standard;
‘reporting period energy use’ means reporting period energy use as de ned in the standard;
‘SANEDI’ means the South African National Energy Development Institute established in terms of section 7 of the
National Energy Act; and
‘standard’ means the South African National Standard 50010 (SANS 50010, Measurement and Veri cation of
Energy Savings), issued by the South African Bureau of Standards in terms of the Standards Act, 2008 (Act 8 of 2008). 54 SAIT CompendIum oF TAx LegISLATIon VoLume 2