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DOE readies guidelines on tax incentives for EE projects

DOE readies guidelines on tax incentives for EE projects

The Department of Energy (DOE) will be issuing guidelines on the availment of incentives with the Board of Investments (BOI) for qualified energy efficiency (EE) projects.

The department has issued a draft Circular that will be the basis on its solicitation of inputs and comments from relevant stakeholders that will be covered of the targeted policy enforcement.

The perks’ availment of EE projects, according to the DOE, is in line with the prescription of Chapter V of Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act which states that “processes and innovations that will lead towards the attainment of the sustainable development goals, shall include but not limited to, adoption of adequate environmental protection systems and sustainability strategies will be a qualified project or activity for tax incentives under the Strategic Investment Priority Plan.”

The DOE has initially classified the EE projects that can avail of BOI incentives into two categories. First is, new energy efficiency projects or those innovative energy efficiency projects designed to reduce energy consumption or costs by any improvement, repair, alteration of any building or facility, including the installation of equipment, fixture or furnishing for the provision of services or as used in manufacturing. Second is, flagship energy efficiency project or energy efficiency development project as defined under the National Energy Efficiency and Conservation Plan (NCEEP) that will have remarkable technological advances to increase energy efficiency with clear measurement.

The EE projects to be endorsed for investment incentives shall have minimum capitalization of at least P10 million, according to the energy department.

“Prior to the approval and endorsement to BOI, all prospective applicants shall be subjected to evaluation in a transparent and expeditious manner to ensure sufficient legal, technical and financial capabilities,” the DOE has specified.

The department further directed that “prospective project proponent shall formally submit their project proposal through written communication addressed to the Director of the Energy Utilization Management Bureau (EUMB),” and such shall be accompanied by all required supporting documents.

“Within five working days, the EUMB shall acknowledge receipt of the proposal and will be undergoing initial evaluation,” the department emphasized.

It added that the approval or denial of the project proposal can be expected within 30 days based on the outcome of the technical, financial and legal evaluations undertaken on the planned EE venture.

“Applicants shall submit an application in a sealed envelope containing a copy of its legal, financial and technical documents,” the DOE noted.

It similarly prescribed that “all project proponents shall pay to the DOE a non-refundable fee of P12,000.00 prior to the submission of its application and documentary requirements,” and the proof of payment shall be attached to the application.

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2021-12-26 22:30:00

[“business”,”trade-energy”,”business”]

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Michael Maren
Former marine biologist who likes to spend as much time in the tropics as possible, due to a horrible time I once had in Alaska. Brrrr.

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