Tax incentives for renewable energy
The Tax Code of 2015 includes a number of fiscal incentives for investments in the production and distribution of renewable energy:
- Investments in renewable energy can benefit from a reduction in corporate income tax equivalent to 50% of the investment undertaken.
- Equipment for the production of renewable energy is exempted from Value Added Tax (VAT). The list of products exempt from VAT includes, wind power generators, hydropower generators, solar water heaters, solar PV panels.
- Investment in equipment (with the exception of buildings) can be depreciated at an accelerated rate of 30% of the net value.
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