Solar Tax Rebate: The Devil is in The Detail
In the recent budget speech, it was announced that private households will receive a tax rebate of 25% of the cost of solar power.
However, on closer inspection of the detail, private individuals need to note the following:
- Although you will need an inverter and may also add a battery to such a solar installation, only the solar panels themselves qualify for the rebate.
- Any installation cost will not qualify.
- It must be new panels, used for the first time.
- It must be put in use during the 2024 tax year.
- The maximum tax rebate is R15 000 and will be deducted from your total tax liability. Therefore, if you pay no tax you will receive no benefit and if your total tax for the year is less than R15 000 the deduction will be limited to your annual tax amount.
- This rebate is not yet part of tax law and the tax law usually only gets approved in January of the following year, although it will apply retrospectively from 1 March. It is uncommon for a tax benefit announced in the budget speech to not form part of the amended tax law but there may be some changes to the benefit and/or requirements.
If you need quality tax advice for yourself or your business, contact us. We’ve got this!