Masana Energy Solutions Corporate Brochure

Signi cant opportunity exists in the application of the Section 12L tax incentive to energy savings projects. Section 12L is an energy incentive aimed at the e cient use of energy to safeguard the security of supply. Section 12L provides an opportunity for industry stakeholders to implement energy e ciency measures to reduce carbon emissions going forward. With the Section 12L tax incentive: • A deduction from taxable income of 95 cents per veri ed kilowatt hour (kWh), or equivalent kWh of energy e ciency savings, applies to projects implemented from 1 March 2015 for years of assessment ending before 1 January 2026. • It is applicable to one full year of assessment (12-month window of savings) for kWh savings per project assessed. • These energy e ciency savings can be claimed upon receiving a certi cate from an accredited M&V inspection body/professional (E.G. ECS M&V body) • Additional bene ts to after-tax returns generated on projects: Effective 26.6 cents per kWh of energy saved, or an effective R2.73 per litre of diesel fuel saved. • Improved after-tax cash flows on projects. Value-added Solutions Section 12L Energy Reduction Tax Incentive Overview