Smart investing: 12J and renewable tax incentives deliver effective 21%pa

It took a while for the market to warm up to the SA government's section 12J tax incentive designed to encourage private investment into the small business sector. But with private sector innovation now having sucked in billions, the State has decided to cap the maximum investment per taxpayer - and is reconsidering whether to renew the incentive when it expires in 2021. As you can image, not all 12J companies are equal. But in former hedge fund heavyweight Kevin Shames's Bright Light Solar, we've uncovered the industry's lowest cost supplier tailored to double up on both the 12J allowance and the extra incentive available for Renewable Energy investments. The result: an astonishing effective return of 21% a year for the six year term of the investment (min R100,000; max R2.5m per taxpayer). In this in-depth interview, Shames explains the inner working of one of the most appealing investments currently available in South Africa. Visit www.biznews.com/bright-light-solar-vcc for more information. - Alec Hogg