Incentives Law for the development of renewable energy projects
(Decree 52-2003)
Characteristics
The purpose of this Law is to promote the development of renewable energy projects as well as to establish fiscal, economic and administrative incentives for this purpose.
Incentives
- – Exemption from customs duties for imports, including the Value Added Tax – VAT-, charges and consular fees on the importation of machinery and equipment, used exclusively for the generation of energy in the area where the renewable energy projects are located. This incentive will be valid exclusively during the pre-investment period and the construction period, which will not exceed ten (10) years.
– Exemption from Income Tax payment. This incentive will be valid exclusively from the Delivery Start Date (DSD), for a period of ten (10) years.
– Tax Exemption for Commercial and Agricultural Companies
-IEMA-. This incentive will be valid exclusively from the DSD, for a period of then (10) years.
Procedure
-To take advantage of the indicated incentives, the interested party must submit the following information to the competent body:
– The request must be addressed to the Ministry of Energy and Mines.
During the pre investment and construction periods, extensions may be submitted to it, following the same procedure.
– The general documentation of the project were it clearly indicates the schedule for the pre-investment period, the construction period and the operation period.
– Declaration that it has complied with the provisions of the General Electricity Law, as applicable.
– Total or partial listing of the materials, equipment and others associated with these periods, and the type of incentives requested, specifying the period to which they correspond.