IN a bid to encourage more investments in renewable energy (RE) projects, a measure that will provide tax incentives to investors in the sector is being pushed in the House of Representatives.
Mindoro Rep. Reynaldo Umali, chair of the House Committee on Energy, said the measure seeks to provide incentives to RE investors like tax holidays and duty-free imports.
He said another possible incentive is for the government to provide subsidies and financing for RE projects.
Umali has also filed a measure that will provide incentives to “energy intensive establishments” that employ power-saving measures.
“Additional tax incentives or tax deductions to any of the businesses that can show they have somehow reduced demand for power by using more efficient technologies,” he added.
Under Umali’s proposal, the Department of Energy (DoE) will be authorized to endorse firms who pioneer energy-efficient technologies to the Board of Investments (BoI) which would entitle them to either a tax holiday or to duty-free importation of equipment.
A full tax credit equal to the customs duties and national taxes due for bringing in renewable energy machinery would also be given to industries or homeowners who shift to renewable energy.
The Renewable Energy Act of 2008 provides incentives for RE commercialization.
The law also provides that all shipments necessary for the manufacture and or fabrication of RE equipment and components shall be exempted from import tariffs and duties and value-added tax.