The Department of Energy (DOE) is pushing to advocate for ‘premium incentives’ in order to lure investments that will support the nuclear agenda.
Energy Undersecretary Sharon S. Garin said that the department was ironing out investment perks with Congress in order to attract investors, such as major tax breaks, paralleling the incentives with those of the renewable energy (RE) sector or could even go higher as nuclear investments require more costs, said Manila Bulletin in its report.
Moreover, Garin said that it is yet to be determined whether a new law is needed for the economic incentives that must be extended for nuclear power projects, or if these can be integrated into the existing Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
While renewable energy (RE) projects have specific incentives, such as a seven-year income tax holiday, duty-free importation of equipment, and more, incentives for nuclear investments are still under discussion.
To this, the DOE planned to consult with Congress, the Board of Investments (BOI) of the Department of Trade and Industry (DTI), and the Department of Finance (DOF) on this major policy matter.
Additionally, the energy department was considering establishing an inclusive legal foundation, including the entirety of the supply chain of the energy sector, mirroring the framing of the Electric Power Industry Reform Act (EPIRA)
Once the investment perks had been decided, the undersecretary claimed that the government should now take into account the prolonged outcome of the infrastructure and its impact on inflation, as the nuclear industry would supply the country with electricity for 60 to 100 years on top of offering jobs for people.