Arroyo signs Renewable Energy bill into law

MANILA, Philippines – President Gloria Macapagal on Tuesday signed into law the Renewable Energy bill, a measure promoting the development of renewable energy sources like solar, wind, water and biomass. Radio dzBB’s Aileen Intia reported that President Arroyo signed Republic Act (RA) 9513, otherwise known as the Renewable Energy Act of 2008. The report said the signing ceremonies were held at the Rizal Hall in Malacañang. Senate President Juan Ponce Enrile and House Speaker Prospero Nograles were present at the ceremonies. RA 9513 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. Under the legislation, renewable energy developers will get a seven-year income tax holiday and will be slapped with a 10 percent corporate income tax, lower than the regular 30 percent, once their income tax holiday expires. Power from renewable energy sources will likewise be exempt from value-added taxes. Renewable energy facilities will be given a 1.5 percent 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. - Sophia Dedace, GMANews.TV