Page 64 - SAIT Compendium 2016 Volume2

Energy ef ciency INCOME TAX ACT: REGULATIONS ANd NOTICES Energy ef ciency
(e) solar;
(f) tidal waves; or (g) wind;
‘waste heat’ means heat that is-
(a) produced directly by an industrial process or machines or equipment utilised in that industrial process; and (b) regarded as a waste by-product that is not utilised for any useful application; and
‘waste heat recovery’ means utilising waste heat or underutilised energy
generated during an industrial process.
(2) A person may not receive the allowance in respect of energy generated from renewable sources or co-generation
other than energy generated from waste heat recovery.
(3) A person generating energy through a captive power plant may not receive the allowance unless the kilowatt hours or the
equivalent kilowatt hours of energy output of that captive power plant in respect of a year of assessment is more than 35 per cent of the kilowatt hours or the equivalent kilowatt hours of energy input in respect of that year of assessment.
Concurrent bene ts
7. For the purposes of section 12L (4) of the Income Tax Act any credit, allowance, grant or other similar bene t granted by-
(a) any sphere of government; or
(b) any public entity that is listed in Schedule 2 or 3 to the Public Finance Management Act, 1999 (Act 1 of 1999), for
any energy ef ciency savings constitutes a concurrent bene t.
Short title and commencement
8.
These regulations are called the Regulations in terms of section 12L of the Income Tax Act, 1962, on the allowance for energy ef ciency savings and come into operation on 1 November 2013.
REGULATIONS IN TERMS OF SECTION 12L OF THE INCOME TAX ACT, 1962, ON THE ALLOWANCE FOR ENERGY EFFICIENCY SAVINGS Promulgated under
GN R186 in GG 38541of 6 March 2015
I, Nhlanhla Musa Nene, 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.
Nhlanhla Musa Nene, MP
Minister of Finance
1 De nitions
SCHEDULE
1. In these regulations ‘the Regulations’ means the regulations published by Government Notice R. 971 of 9 December 2013.
Amendment of regulation 6 of the Regulations
2. Regulation 6 of the Regulations is hereby amended—
(a) by the deletion in subregulation (1) of the de nitions of ‘energy from waste’, ‘waste heat’ and ‘waste heat
recovery’;
(b) by the insertion in subregulation (1) after the de nition of ‘combined heat and power’ of the following
de nition:
‘energy conversion ef ciency’ 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’; and
(c) by the substitution for subregulations (2) and (3) respectively of the following subregulations:
‘(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.
(3) A person generating energy through a captive power plant may not receive the allowance unless the energy conversion ef ciency of the plant is greater than 35 per cent.’.
Amendment of regulation 7 of the Regulations
3.
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Section 7 of the Regulations is here by amended—
(a)
(b) (c) (d)
by the substitution for the words preceding paragraph (a) of the following words:
‘For the purposes of section 12L(4) of the Income Tax Act any credit, allowance, grant, cost recovery agreement or other similar bene t granted by or through—’;
by the deletion of the word ‘or’ at the end of paragraph (a);
by the substitution for the comma at the end of paragraph (b) of the expression ‘; or’; and
by the addition after paragraph (b) and the substitution of the words following paragraph (b) of the following paragraph and words:
‘(c) any power purchase agreement as de ned in Electricity Regulations on New Generation Capacity made
by the Minister of Energy under section 35(4) of the Electricity Regulation Act, 2006 (Act 4 of 2006) SAIT CompendIum oF TAx LegISLATIon VoLume 2