Document ID: chunk:federal_register_of_legislation:C2024A00052:clause:2_1:p1
Version: federal_register_of_legislation:C2024A00052
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 1/4)
Character Range: 8419–10943

1  At the end of Division 328
Add:

328‑465  Energy incentive
 (1) You can deduct for an income year an amount that is equal to the lower of:
 (a) 20% of the total amount (which may be nil) of your expenditure to which subsection 328‑470(1) or (3) applies in relation to the income year; and
 (b) $20,000 less any amount deducted under paragraph (a) for a previous income year.
Note: The deduction relates to the period of 1 July 2023 to 30 June 2024. An entity may have deducted an amount under paragraph (a) for a previous income year if the entity has a substituted accounting period.

These are bonus deductions under the Income Tax Assessment Act 1997
 (2) The Income Tax Assessment Act 1997 has effect as if this section and section 328‑470 of this Act were provisions of Division 25 of the Income Tax Assessment Act 1997.
 (3) Sections 8‑10, 40‑215 and 355‑715 of the Income Tax Assessment Act 1997 do not apply in relation to a deduction under this section.

328‑470  What expenditure qualifies for the energy incentive

Expenditure included in the first element of cost of a depreciating asset
 (1) This subsection applies to an amount of expenditure in relation to an income year if:
 (a) the expenditure is included in the first element of cost of a depreciating asset; and
 (b) you can deduct the expenditure under a provision of a taxation law (other than section 328‑465 of this Act) whether or not in, or wholly in, the income year in which the expenditure is incurred; and
 (c) you start to use the asset, or have it installed ready for use, for any purpose after 30 June 2023 but before 1 July 2024; and
 (d) you start to use the asset, or have it installed ready for use, for a taxable purpose at a time (the start time) that is:
 (i) in the income year; and
 (ii) after 30 June 2023 but before 1 July 2024; and
 (e) you are a small business entity, or an entity covered by subsection (4), for the income year that includes the start time; and
 (f) subsection (2) (about eligible energy assets) applies to the asset; and
 (g) neither the expenditure nor the asset is excluded under subsection (6); and
 (h) the only balancing adjustment events that occur for the asset at a time during the period starting on 1 July 2023 and ending on 30 June 2024 occur because you stop holding the asset because of an event or circumstance referred to in subsection 40‑365(2) (about involuntary disposals) of the Income Tax Assessment Act 1997.
 (2) This subsection applies to an asset if:
 (a) the asset uses electricity