Section 12B & 12L Tax Incentive Claims
Substantial tax relief for businesses investing in energy efficiency and renewable energy.
South Africa's tax legislation provides substantial relief for businesses that invest in energy efficiency and renewable energy. Green Reconstructors specialises in facilitating and substantiating both Section 12B and Section 12L claims, ensuring you maximise your allowance and remain fully compliant with SARS requirements.
Section 12B — Renewable Energy
Section 12B of the Income Tax Act provides an accelerated depreciation allowance for assets used in the generation of electricity from renewable sources, including solar PV, wind, and hydropower. Qualifying assets may be written off in a single tax year (100% in year one under recent amendments), significantly reducing taxable income.
- Solar PV installations (commercial and industrial scale)
- Wind energy assets
- Hydropower and other qualifying renewable technologies
- GR assists with qualifying asset identification, documentation, and SARS substantiation
Section 12L — Energy Efficiency
Section 12L allows a tax deduction of 95 cents per kilowatt hour (kWh) saved, as verified by a South African National Energy Development Institute (SANEDI) approved measurement and verification (M&V) professional. This is one of the most significant energy-related tax incentives available to South African business.
- Eligible for industrial and commercial operations
- Requires baseline measurement and verified savings — GR manages the full M&V process
- Works in tandem with an ISO 50001-aligned EnMS for maximum benefit
- GR coordinates with SANEDI-approved M&V practitioners
- We prepare and support SARS submissions
Why Use GR for Tax Claims
- We combine technical energy expertise with tax incentive knowledge — most firms offer only one
- End-to-end service: audit, M&V, documentation, and submission support
- Partnerships with accredited M&V professionals and tax advisors
- Track record of successful claims across industrial and commercial sectors