More than $1 billion in renewable energy incentives approved in Dominican Republic

The National Energy Commission (CNE) managed in 2021, 1,458 requests for tax incentives, which represented RD$1,095 million in exemptions in support of renewable energy generation projects in areas of the Dominican Republic.

These exemptions were granted to companies and individuals who invested in the acquisition and installation of renewable systems, both for the generation and sale of energy.

In the case of the incentives for the exoneration of 100% of all taxes arising at the time of importing the equipment, the total number of recommendation resolutions issued was 282, for a total of approximately RD$163,123,643.41.

Regarding the Tax Credit Incentive on Income Tax, 332 resolutions of authorizations were issued, for a total amount of approximately RD$488,351,107.99.

Meanwhile, 844 resolutions were issued authorizing the exemption of 100% of the ITBIS on local purchases of renewable energy source equipment, for a total of approximately RD$443,667,831.88 Dominican pesos.

Edward Veras Díaz, executive director of the CNE, explained that the Government is increasingly supporting renewable energy generators in the country.

He explained that the CNE, an institution attached to the Ministry of Energy and Mines, acted in accordance with the provisions of Law 57-07, on Incentives for the Development of Renewable Energy Sources and their Special Regimes.

He stated that the CNE is committed to develop the necessary actions to increase the generation of renewable energies in the country and to encourage the reduction of dependence on oil, in order to reduce greenhouse gas emissions that have an impact on global warming.

He stressed the importance of increasing the generation of clean energy, in view of the situation affecting the world, which has a negative impact on the prices of oil derivatives.

He explained that the incentives offered range from 100% exemption of ITBIS payment, imports for self-producers and supplier companies and imports for concessionaires, to the authorization of 40% of credits.

He explained that the operational implementation of these tax incentive authorization recommendations he made, are attributions of the Ministry of Finance, the General Directorate of Internal Taxes and the General Directorate of Customs.

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