Budget commentary

Jeff Miller, founder of the Twelve B Green Energy Fund comments that: “The minister is to be congratulated on his foresight to increase the Section 12B tax allowance from 100% to 125%. This means that businesses will definitely look to invest in solar which will assist with the energy crisis in SA.

“In terms of the Twelve B Green Energy Fund, this move will give our investors an increased return from 14% to 18%, which is an unbelievable return for a moderate risk investment.

“In addition,  the minister introduced an allowance for homeowners for up to 25% of the value of the solar kit up to a maximum of R15 000. This means that a homeowner can invest up to R60 000 in a solar kit to get the maximum tax benefit of R15 000.

“These incentives bode well for South Africa, for the Twelve B Green Energy Fund and the acquisition of renewable energy.”

Miller represents South Africa’s first private equity fund which allows green energy investors to qualify for SARS-approved tax deductions. Section 12B of the Income Tax Act No. 58 of 1962 allows for a tax deduction for certain qualifying assets used for electricity generation from renewable sources.

“Green energy has become a necessity due to SA’s unreliable electricity supply and the private sector needs to step in to urgently improve the situation with government’s support.  In addition to the longer-term benefits of sustainable energy generation, the Twelve B Green Energy Fund is an attractive investment. South African individuals, trusts, companies and pension funds can write off 125% of their investment against their taxable income in the year the assets produce electricity,” says  Miller.

The Twelve B Green Energy Fund mandate is to invest in solar panels, inverters and batteries in residential complexes, and commercial and industrial installations.

For more information go to www.twelveb.co.za