Lifecycle
- Effective
- Last change
Country / jurisdiction: El Salvador · Year: 2007 · Status: In force · Level: National · Type: Voluntary
The purpose of this Law is to promote investments in projects based on the use of renewable energy resources (e.g. hydro, geothermal, wind, solar and biomass) for electricity generation. The Law provides fiscal incentives for power plants from wind, solar, biomass, geothermal and hydro energy, including:
10 year import duty exemption for equipment (including transmission equipment) for plants up to 20MW.
Income tax exemptions:
5 years for 5-10 MW
10 years for 10-20 MW.
Tax exemption from the sale of CDM credits (CERs) or equivalent carbon credits.
Projects larger than 20MW can deduct exploration and project preparation costs for up to 20% per year.
All incentives are applied exclusively only to new investments. In 2012, Agreement 162, described the technical requirement that must be fulfilled in order to apply for the incentives.
The fiscal incentives described in Decree Law No 462 (2007) are regulated by Decree 4 of 2009.
Source
https://www.iea.org/policies/6141Canonical document at the regulator. Always cite this URL — not the Vantage detail page — in compliance evidence.