Jaltech Introduces Its Section 12B Solar Investment Offering Tax Deductible Benefits

Jaltech has unveiled a new investment opportunity that focuses on providing South African investors with exposure to the fast-growing solar sector in the country. This investment combines the long-term, low-risk nature of solar investments with an upfront tax benefit.

The investment allows investors to fund solutions offered to solar providers supplying commercial and industrial businesses with solar energy. These funding solutions enable these businesses to buy reliable electricity at a competitive rate that is expected to be lower than Eskom's over the long term.

Section 12B vs Section 12J

Jaltech's Tax-Deductible Solar Investment offers investors the potential for significant annual returns while also providing them with the ability to claim a tax deduction on their investment amount under Section 12B of the Income Tax Act. The difference between this investment and Jaltech's past Section 12J investments is that investors can claim an income tax deduction of 125% of the investment value rather than a 100% deduction with Section 12J investments.

Section 12B explained:

Under Section 12B, taxpayers (companies, individuals, or trusts) who invest in or acquire solar equipment with the intention of generating income can claim a tax deduction of 125% of the investment amount. For example, an individual taxpayer who earns income in the highest tax bracket and invests R1 million in Jaltech's Tax-Deductible Solar Investment can reduce their taxable income by R1.25 million, resulting in a tax saving or refund of R562,500, which reduces the investor's risk by 56% in the first year.

Why now is the time to invest

Any company, individual, or trust looking to offset an income tax or capital gains tax liability can invest. However, investors can only claim a tax deduction in the year of investment if the solar project is producing electricity within that financial year, creating a deployment risk. Therefore, investors must invest promptly as the fund manager needs time to deploy the capital.

In conclusion, Jaltech's Tax-Deductible Solar Investment presents an opportunity for South African taxpayers to benefit from the current energy supply crisis while gaining exposure to a reliable asset class that offers predictable long-term returns. Additionally, investors can significantly reduce their tax liability through a 125% income tax deduction on their investment amount.

To mitigate deployment risk, Jaltech has built up a pipeline of over R150 million in investment opportunities and will limit its initial capital raise to R100 million. Those interested in the investment opportunity can attend a webinar with Jaltech's investment experts or schedule a virtual meeting with us, for more information visit www.jaltech.co.za.