Argentina Taxes and incentives for renewable energy- KPMG Global Energy & Natural Resources.
Support is available for renewable energy sources including biofuels, solar, wind, hydro and geothermal, among others.
At the local tax level:
The property used for the project will not be a part of the minimum, presumed, income tax taxable base. In addition, biofuel producers will not be subject to the hydric infrastructure tax, the tax on liquid fuels and the gas oil tax for the amount of fuel that is marketed in the national territory.
At the provincial level:
The type of benefit depends on the geographic area in which the renewable energy plant operates, so the plant’s specific location must be supplied for a proper tax classification.
The aim is to reach a contribution of sources of renewable energy equal to 8 percent of the total national consumption of electric energy within a term of 10 years, starting in 2006, the effective date of the regime.
Quota obligations also include the use of fossil fuel mixed with at least 10 percent of biofuels, including biodiesel and bioethanol.
The following authorizations are required for the construction of renewable energy plants:
In March 2014, a bill was brought before the Argentine Senate to make the application of Law 26190 more flexible and to achieve an 8 percent share in the satisfaction of the national demand of electric energy within a 10-year term (expiring in 2016). In addition, the bill sets a new goal for 2025, which consists in increasing the aforementioned share to 20 percent. As of mid-year 2015, the Argentine Senate has approved this bill, and we assume that the House of Representatives´ half sanction will follow.
Apart from the benefits provided by prior regulations, the bill introduces a provision for the collection of a tax bonus to be allocated to the payment of national taxes.