The Department of Energy (DOE) said on Thursday that it will be simplifying requirements for renewable energy (RE) companies seeking to avail of incentives in order to support sustainable and clean-energy investments.
Energy Sec. Alfonso Cusi signed on Christmas Eve Department Circular DC2021-12-0042, amending Sections 13-E and and 18-C of DC2009-05-0008, also known as the implementing rules and regulations of Republic Act 9513 or the RE Act.
“We are pleased to issue an amended policy that would address the long-standing concerns of the RE law’s target recipients, including RE developers, fabricators, and manufacturers regarding the availment of the law’s incentives. This includes, among others, the implementation of the tax provisions, particularly the automatic availment of the ten percent Corporate Tax Rate and Zero-Rate Value Added Tax,” Cusi said in a statement.
Section 13-E states that acquiring corporations must have taken over, administered, or operated RE energy facilities that have been in commercial operation for more than seven years to qualify for the ten percent corporate tax rate.
Section 18-C, meanwhile, stipulates that RE developers can only avail of the incentives after they obtain an endorsement from the DOE.
The RE Act also provides that savings generated in availing of the reduced corporate income tax rate must be effectively passed on to end-users in the form of lower power rates.
The DOE is set to evaluate the effectiveness of the amended circular through a review of annual reports submitted by RE developers.