Advertisement

DoE sets energy-saving threshold at 15% to qualify for tax breaks

Font Size

THE Department of Energy (DoE) said it is preparing guidelines for granting fiscal incentives for energy efficiency and conservation (EEC) projects, setting 15% in projected energy savings as the qualifying standard.

In a draft circular, the department outlined the process for acquiring its endorsement to the Board of Investments (BoI) to avail of income tax holidays and other incentives for energy-saving projects.

The department’s Energy Utilization and Management Bureau will be in charge of the applicants, and track projects granted tax breaks.

“The anticipated savings, due to energy efficiency and conservation measures to be installed/adopted will be double-checked by the technical staff without prejudice to making his own calculations,” it said.

“I(n) case discrepancies arise, the calculation of the technical staff shall be regarded as final,” it added.

The final decision on providing such incentives, though, lies with the BoI.

Republic Act No. 11285, or the EEC Act, requires the BoI to include energy-saving projects in the annual investment priorities plan for incentives provided under Executive Order No. 226, or the Omnibus Investments Code.

The guidelines provide for penalties against applicants failing to file a report within 30 days after the completion of their projects, and also require independent verification of any energy-saving claims.

The DoE is soliciting comments on the draft circular until Aug. 17. — Adam J. Ang





Advertisement