Renewable energy tax allowance extended for supporting structures 31 July 2012.

The Taxation Laws Amendment Bill 2012 (TLAB) proposes an amendment to s12B of the Income Tax Act, No 58 of 1962 (Act) to provide a capital allowance in relation to supporting structures for renewable energy projects.

Section 12B of the Act, as it is currently drafted, provides a capital allowance in respect of machinery, plant, implements, utensils or articles used, among others, in the production of renewable energy on a 50/30/20 basis. With regard to the significant amounts to be spent on infrastructure relating to renewable energy projects, it becomes critically important for taxpayers to accurately identify all assets falling under the accelerated capital allowance regime…