EVALUATING THE FEASIBILITY OF THE 12L TAX INCENTIVE FOR ENERGY-INTENSIVE INDUSTRIES

Authors

  • Kristy Campbell Centre for Research and Continued Engineering Development (CRCED), North-West University, Pretoria
  • W Booysen Centre for Research and Continued Engineering Development (CRCED), North-West University, Pretoria
  • J C Vosloo Centre for Research and Continued Engineering Development (CRCED), North-West University, Pretoria

DOI:

https://doi.org/10.7166/28-3-1836

Abstract

Section 12L of the South African Income Tax Act (12L) aims to incentivise businesses to become more energy-efficient. However, claiming this benefit is a complex process that can become difficult, time-consuming, and costly if not clearly understood. It is therefore important to evaluate the feasibility of potential 12L applications before any unnecessary expenses are incurred or time is wasted. This article provides a brief overview of 12L and its associated literature before presenting a simplified feasibility evaluation strategy. The strategy consists of three key evaluation steps designed to identify potential issues quickly. The identified issues are linked to specific South African National Standards (SANS) guidelines to ensure that the issues can be resolved in a 12L-compliant manner. The strategy is applied to 47 industrial case studies. Some detailed results are presented to give a practical illustration of how the strategy works. The generalised results are further used to illustrate the potential benefit in time and cost reduction.

Downloads

Download data is not yet available.

Author Biographies

Kristy Campbell, Centre for Research and Continued Engineering Development (CRCED), North-West University, Pretoria

Author was enrolled for a PhD degree in the Department of Mechanical and Nuclear Engineering at the North-West University’s Centre for Research and Continued Engineering Development (CRCED) in Pretoria

W Booysen, Centre for Research and Continued Engineering Development (CRCED), North-West University, Pretoria

Author was a post-doctoral student at the North-West University’s Centre for Research and Continued Engineering Development (CRCED) in Pretoria

Downloads

Published

2017-11-22

How to Cite

Campbell, K., Booysen, W., & Vosloo, J. C. (2017). EVALUATING THE FEASIBILITY OF THE 12L TAX INCENTIVE FOR ENERGY-INTENSIVE INDUSTRIES. The South African Journal of Industrial Engineering, 28(3), 15–28. https://doi.org/10.7166/28-3-1836

Issue

Vol. 28 No. 3 (2017)

Section

General Articles

License

Authors who publish in the Journal agree to the following terms:
  1. Authors retain copyright and grant the Journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this Journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the Journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this Journal.