Renewable energy bill signed Tuesday

MANILA, Philippines - President Gloria Arroyo is scheduled to sign into law today the Renewable Energy Act of 2008, a measure that seeks to promote the development of renewable energy sources like solar, wind, water and biomass. A Palace schedule showed that the signing ceremonies would be held at 10 a.m. at the Rizal Hall in Malacañang. The measure provides fiscal incentives to companies that would invest in renewable energy projects and directs the Energy Department and the National Power Corp. to connect renewable energy sources to the national power grid. Renewable energy developers will get a seven-year income tax holiday and will be slapped with a 10% corporate income tax, lower than the regular 30%, once their income tax holiday expires. Power from renewable energy sources will be value added tax- exempt. Renewable energy facilities will be given a 1.5% realty tax cap on the original cost of equipment and facilities used to produce energy. Importation of equipment and materials to be used for renewable projects would be duty-free for 10 years. — A. D. B. Romero, BusinessWorld