Mini-hydroelectric Power Incentive Act (RA 7156)

Laws and Policies

CCLW

CCLW national policies

Law passed

RA 7156 aims to strengthen and enhance the development of the country's indigenous and self-reliant scientific and technological resources and capabilities and their adaptation to the country in order to attain energy self-sufficiency and thereby minimise dependence on outside source of energy supply. To this end, mini-hydroelectric power developers shall be granted the necessary incentives and privileges to provide an environment conducive to the development of the country's hydroelectric power resources to their full potential.<br />
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The Office of Energy Affairs is responsible for the regulation, promotion and administration of mini-hydroelectric power development and the implementation of the provisions of this Act. The mini-hydroelectric power developer must first offer to sell electric power to the National Power Corporation, franchised private electric utilities or electric co-operatives.<br />
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Mini-hydroelectric power developers shall be granted the following tax incentives or privileges: (1) special privilege tax rates to develop potential sites for hydroelectric power and to generate, transmit and sell electric power; (2) tax and duty-free importation of machinery, equipment and materials; (3) tax credit on domestic capital equipment; (4) special realty tax rates on equipment and machinery; (5) value-added tax exemption; and (6) income tax holiday.