Page 39 - Robin Twaddle PTG 2017 Digital

REGULATIONS FOR NEW BUILDINGS AND
ENERGY USAGE

The EE Regulations or “energy efficiency regulations” for energy usage in buildings
provide that all new buildings and building extensions in South Africa must conform to
the regulations on energy conservation, including homes, industrial buildings, hotels and
schools.

Compliance:
The regulations are enforceable in terms of the National Building Regulations and Building
Standards Act. Building plans will not be approved without compliance with the regulations.
Buildings Control Officers (inspectors) will be required to ensure that buildings are built
in accordance with National Building Regulations and specifically with energy usage
requirements. No compliance – no occupancy certificate.

TAX ALLOWANCE FOR ENERGY-EFFICIENCY SAVINGS

Regulations on the tax allowance for Energy-efficiency savings stipulate that any company
holding a certificate that can prove their energy savings are genuine, can submit the
certificate to claim an allowance from SARS. The allowance is as contemplated in Section
12L (2) of the Income Tax Act, 1962. Section 12L provides that tax incentives are available
for savings in all energy forms, and not only electricity. The energy-efficiency savings tax
incentive is calculated at a rate of 95c/kWh and also applies to cogeneration projects.

“ENVIRONMENTAL” DEDUCTIONS/ALLOWANCES

◆◆ Section 12B Deduction in respect of certain machinery, plant, implements, utensils
and articles used in farming or production of renewable energy

◆◆ Section 37B Deductions in respect of environmental expenditure
◆◆ Section 37C Deductions in respect of environmental conservation
◆◆ Section 11D Deduction for research and development costs
◆◆ Section 12K Exemption for Certified Emission Reductions
◆◆ Section 12L Special Allowance for Energy Efficiency Savings
◆◆ Section 12U Allowance for renewable energy supporting structures

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