Tax break for energy savings


JOHANNESBURG (Reuters) – South Africa plans to give a tax allowance to companies that save energy in a bid to reduce greenhouse gas emissions, the Department of Energy said on Friday.

Africa‘s biggest economy has been under pressure to reduce its carbon footprint, with more than 90 percent of its power currently supplied by coal-fired plants. It also faces tight supplies in the face of fast-rising demand.

The department said the regulations, which the public can submit comments on for the next 60 days, would provide a tax allowance for any company that produced a certificate proving its energy savings were genuine.

Companies would have to submit the certificate to the South African Revenue Service to claim the allowance.

A senior government official said on Wednesday South Africa was confident that a recently launched bidding process for renewable energy will lead to the addition of 3,725 megawatts of green energy to the national grid by 2016.

via S.Africa moves to company tax break for energy savings | Reuters.