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El Salvador Amends Tax Incentives for Renewable Energy

04 November 2015

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Approved Changes

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El Salvador

On 15 October 2015, El Salvador's National Assembly approved amendments to the country's Tax Incentives Law for the Promotion of Renewable Energy Used in the Generation of Electricity. The amendments expand the availability of the incentives, which include: A 10-year income tax exemption for projects producing up to 10 megawatts from renewable energy sources; A 5-year income tax exemption for projects producing more than 10 megawatts from renewable energy sources; and A 10-year customs duties exemption for imported equipment, machinery and materials used for the construction of renewable energy projects. The main amendments include: The 20 megawatt eligibility cap for...