By John Jack, CEO of Galetti Corporate Real Estate
The 2023 Budget speech flirted around some key issues but ultimately delivered the news that government is now incentivising companies and privates to install solar. Two points set to impact our sector include:
Renewable Energy Fiscal Support Package
Businesses can reduce their taxable income by 125% of the investment cost into renewable energy.
Our thoughts: Most of South Africa’s businesses are already working towards becoming more ‘energy independent’. Commercial properties are making large investments in solar energy, inverters, and generators to attract and retain tenants. The incentive is decent but I question whether it is enough. That said, lifting the amount of solar one can install is probably all the incentive we need.
Urban Development Zone Tax Incentive Extended
Aimed at boosting inner-city renewal, this incentive has been extended by a further two years.
Our thoughts: Continuous investment in inner-city revival is needed. Our research shows that many people are heading back to the cities and that there’s a strong need to upkeep CBDs in an effort to attract tourists.
Cape Town is streaking ahead in this space led by CCID Chairman Rob Kane. Rob has a vested interest and actively drives the reform along with the City. The relationship between the City and the CID is key to seeing change enacted quickly.
