The Department of Energy is actively encouraging the development of private sector power generation.
The following general incentives are available to duly certified projects that qualify under the Renewable Power Act of 2008 (RA 9513)
- 1. Income Tax Holiday (ITH) – For the first seven (7) years of its commercial operations
- 2. Duty-free Importation of RE Machinery, Equipment and Materials
- 3. Special Realty Tax Rates on Equipment and Machinery capped at 1.5%
- 4. Net Operating Loss Carry-Over of the RE Developer during the first three (3) years from the start of commercial operation.
- 5. Corporate Tax Rate. – After seven (7) years of income tax holiday, all RE Developers shall pay a corporate tax of ten percent (10%) on its net taxable income.
- 6. Zero Percent Value-Added Tax Rate.
- 7. Cash Incentive of Renewable Energy Developers for Missionary Electrification of 50% of theuniversal charge for power needed to service missionary areas.
- 8. Tax Exemption of Carbon Credits. – All proceeds from the sale of carbon emission credits shallbe exempt from any and all taxes.
- 9. Tax Credit on Domestic Capital Equipment and Services. – A tax credit equivalent to one hundred percent (100%) of the value of the value-added tax and custom duties that would have been paid on the RE machinery, equipment, materials and parts had these items been imported
Click here for more info on Government incentives of the Renewable Energy Act of 2008.
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