In South Africa, a new private equity fund has been established to help green-energy investors qualify for a tax deduction.

The Twelve B Green Energy Fund will invest in renewable-energy projects while offering investors the ability to deduct their investment from their taxable income.

According to Grovest, which manages the fund, Section 12B of the Income Tax Act allows for a tax deduction for certain qualifying assets used for electricity generation from renewable sources.

Engineering News reports that ‘Section 12B of the Income Tax Act allows for a tax deduction for certain qualifying assets used for electricity generation from renewable sources’.

It adds that ‘Twelve B’s portfolio of assets is spread over several solar projects in different locations and which have different end-users. Each project is governed by a long-term power purchase agreement [PPA], which governs the amount of energy generated at an agreed price over the term of the PPA’.

21 February 2023
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