Taxes to profits: Invest in solar, save tax, and help solve SA’s energy crisis
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Futureneers is proud to present South Africa's first Section 12BA Wheeling Partnership, a pioneering investment opportunity that turns your tax payments into vital solar energy our nation needs. This innovative project provides significant upfront tax advantages, and gives the investor an ongoing annuity based income stream, making it a mutually beneficial solution for taxpayers. (Interested? Click here)
Convert your taxes into profitable investments
Are you frustrated with paying taxes without seeing any returns or real change in our country? The Futureneers Section 12BA Wheeling Partnership allows you to leverage your tax payments for significant long-term financial gain. By capitalizing on the Section 12BA tax benefit, you can receive an unprecedented 222% in tax deductions. This makes it an exceptionally advantageous opportunity and potentially the most aggressive tax incentive in South Africa's history.
Immediate and long-term financial gains
Assuming you are subject to the maximum tax rate of 45%, and you make a R1,000,000 investment, in addition to receiving a SARS refund of R1,000,062, you will also earn R69,420 in February 2025 as your portion of the development profits. When you then include your project returns of another R20,000 for the first year, your investment will be 109% de-risked within the first year.
This investment is however much more than an impressive 109% year one return including your tax break. The project provides a steady ongoing income stream to investors for the next 25 years, which can be annuity based, or could be sold in future years should the investor require further liquidity. Putting it all together, the investment delivers an impressive Internal Rate of Return of 41% pre-tax or 31% post-tax. The good news is that this investment even makes sense for investors on tax rates as low as 35%.
Click here and complete the online form, and Futureneers will contact you to discuss how you can benefit from significant tax savings and consistent returns.
Key Features and Benefits:
- Investment and Tax Rebate: Invest R1,000,000 and receive R1,000,062* refund from SARS under the Section 12BA tax benefit, ensuring your initial investment is fully de-risked.
- Early Profits: Earn R69,420* by February 2025, plus ongoing pre-tax annual returns averaging R45,500* p.a. over 25 years (pre-tax inflation adjusted).
- Reduced Risk: Our energy wheeling model significantly reduces credit risk by diversifying sales to multiple clients on the Eskom network.
- Sustainable Growth: Contribute to South Africa's renewable energy sector while securing significant financial returns and at the same time being 109% de-risked in capital contributions in year 1.
- Pay only 10% today: Secure your partnership stake now by only paying 10% of your investment, with the balance payable by 25 July 2024.
- 25-Year PPA: Project is backed by a 25-year PPA.
- Closing Date: 25 July 2024.
Why choose Futureneers?
Since 2016, Futureneers have evolved from a startup incubator to a leading force in private equity focused on renewable energy, with constructing and funding more than 10MW of solar and battery energy storage systems to date. With over R600 million in total capital raised and a dedicated team boasting more than twelve years of experience in renewable asset investments, we are positioned at the forefront of the industry.
Unlike traditional fund managers, we take a more entrepreneurial approach. We are deeply involved in every stage of our projects, from financial modelling and design to construction and ongoing management of our renewable energy assets. This hands-on involvement allows us to ensure the highest standards, while also being agile and responsive to market changes. Our comprehensive approach ensures we complete projects on time within the Section 12BA regulations ensuring investors will qualify for their tax deductions.
Our innovative approach, that includes Virtual Power Purchase Agreements (VPPA's) using Eskom's national wheeling framework, is an absolute game changer because we are now able to sell energy to any corporate and industrial client already connected to the Eskom transmission grid, anywhere in SA. Wheeling is also already available to a few Municipalities, and we believe the bulk will be wheeling enabled in the next few years – making the target market even larger.
We strategically decided to offer our energy to the market with a simple solution for clients: buying energy at rates lower than Eskom's, with commitments of only 2 to 5 years. This is significantly shorter than our competitors, who require a minimum commitment of 15 years. This approach allows us to achieve better margins and retain the flexibility to capitalize on the increasing value of energy in the future.
As a back-stop, we have secured a 25-year Power Purchase Agreement (PPA) with Nyanza Light Metals, a multi-billion rand development in the KZN Industrial Development Zone, which is expected to be operational in three years. This agreement ensures a stable long-term demand while also allowing us to provide surplus energy to leading energy traders.
Futureneers firmly believe that our unique short-term virtual PPA model will make us the preferred provider of discounted energy to our target markets over an extended period.
Invest now
Futureneers' Section 12BA Wheeling Partnership is closing on 25 July 2024 and has limited capacity for new investors. This is your opportunity to turn tax payments into solar energy and long-term financial returns. Interested in learning more about this innovative investment? Click here and complete the online form, and a representative from Futureneers will contact you to discuss how you can benefit from significant tax savings and consistent returns.
* Disclaimer
This document is not intended to be and should not be considered as financial, legal, or investment advice. Futureneers Capital (Pty) Ltd FSP: 46996 encourages potential investors to consult with one of our representatives to assess the suitability of this investment and to conduct your own research and obtain external financial and tax advice. Projected returns are based on a taxpayer in the 45% tax bracket.
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