The solar Investment Tax Incentives is one of the most important national policy mechanisms to support the deployment of solar energy in the Philippines. REAP is successfully advocating for a multi-year extension of these types of incentives, which provided business certainty to project developers and investors. These incentives continues to drive growth in the industry and job creation across the country.
What is the Solar Investment Tax Credit?
Tax policies related to renewable energy play a vital role in creating new high-wage Filipino jobs, spurring economic growth, ensuring global competitiveness, lowering energy bills for consumers & businesses, and reducing pollution. The solar tax credit incentives reduces the tax liability for individuals or businesses that purchase qualifying solar energy technologies. As a stable, multi-year incentive, the Renewable Energy tax incentives encourage private sector investment in solar manufacturing and solar project construction. The solar tax based incentives is the cornerstone of continued growth of solar energy in the Republic of the Philippines.
The following represent the different agencies and laws that have a direct effect on the financial viability of solar projects in the Philippines:
* Renewable Energy Act of 2008 (RA 9513) and its IRR
* EPIRA Law (RA 9136) and its IRR
* The Bureau Of Investments Law (RA 5186) The Department Of Energy Law (RA 7638, as amended by RA 9136)
* The Tax Code (RA 8424) and the relevant Revenue Regulations
* The Tariff and Customs Code (PD 1464, as amended)