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The energy department says tax incentives are being introduced for businesses that can show measurable energy savings.
Director-general, Nelisiwe Magubane says businesses will however, have to register with the SA National Energy Development Institute to qualify for the tax cuts.
The announcement was made in terms of section 12L of the Income Tax Act as amended, which came into effect on November 1.
National Treasury chief director Cecil Morden says it is difficult to predict what the tax incentives will cost the fiscus.
The expected tax relief will be a 45 cents deduction on taxable income per kilowatt hour of energy saved.
