Mini-Hydroelectric Power Incentive Act, RA 7156 of 1991 (Philippines)

The Mini-Hydroelectric Power Incentive Act declares that it is policy of the State 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 to attain energy self-sufficiency and minimize dependence on outside sources of energy supply. Pursuant to this, 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. Entities authorized to engage in mini-hydroelectric power developments are granted tax incentives or privileges including Special Privilege Tax Rates of 2% of their gross receipts, tax and duty-free importation of machinery, equipment and materials, tax credit on domestic capital equipment, special realty tax rates on equipment and machinery, value added tax exemptions, and income tax holiday for seven years from the start of commercial operation.