Argentina

Argentina

Argentina Taxes and incentives for renewable energy- KPMG Global Energy & Natural Resources.

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Support schemes

Investments and other subsidies

Support is available for renewable energy sources including biofuels, solar, wind, hydro and geothermal, among others.

At the local tax level:

  • anticipated value added tax (VAT) refunds for the new depreciable property (except for automobiles) included in the project.
  • accelerated income tax depreciation. (Filing two claims for the same project are not allowed).

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:

  • real estate tax exemption
  • stamp tax exemption
  • turnover tax exemption/deferral
  • tax stability.

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.

Operating subsidies

Subsidies at the national level:

  • Wind: Argentine peso (ARS)0.015/ kWhSolar: 0.9 ARS/kWh
  • solar: ARS0.9/kWh
  • hydro for less than 30 MW installed capacity: ARS0.015/kWh
  • other: ARS0.015/kWh. Several provinces have different incentive feed-in tariffs according to the kind of energy they want to promote.

Quota obligation

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.

Additional information

The following authorizations are required for the construction of renewable energy plants:

  • authorization to use the land
  • environmental impact study
  • approval by the Energy Secretariat
  • bidding offer submitted through the Program of Electric Generation through Renewable Energies (Programa Generación Renovable or GENREN).

Bill

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.

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