Tax and Solar Energy Plants: Your Business Can Deduct the Costs Upfront
“If only there was some kind of an infinite power source that was free to use all day every day…” (Anon)
In a recent binding ruling, SARS confirmed it will allow the cost of solar power units. The capital costs that may be deducted are:
- Photovoltaic solar panels;
- AC inverters;
- DC combiner boxes;
- Racking; and
- Cables and wiring.
- Installation planning expenses;
- Panels delivery costs;
- Installation expenses; and
- Installation safety officer costs.
Remember the normal rules apply in terms of qualifying for a deduction – the plant must be owned by the taxpayer, it must be used for the purposes of trade by the taxpayer and the plant must be brought into first time use by the taxpayer.
This is good news for people tired of load shedding.