Dominican Republic

Approved in 2007, the Renewable Energies Incentive Law 57-07 grants incentives and tax exemptions on alternative energy imports and facilities for research and application of renewable energy technologies.   Law 57-07 eliminates former law 2071, opening the country for the development of alternate energy sources. The new law’s incentives, include the following:- 100% exemption over import duties for equipment, machinery and accessories required for renewable energy production.- Income tax exemption. A 10-year exemption from all taxation on profits up to, but not beyond, the year 2020.- Fixing of the electricity price from renewables that enters the national grid to the price of the market for the distributors.- Tax incentive for Self-Producers. Up to a 75% credit on capital cost for businesses’ shift entirely to renewable energy systems or increase their energy consumption share in these. This tax credit will be deferred to the self-producer’s income tax for the next 3 years.- Community Projects Incentives. Every and all institution of social interest (community organizations, producers associations, registered mutual groups) willing to develop renewable energy sources at a small scale (up to 500 KW) and destined to a community use, may access financial assistance funds at the lowest market rate for developing these projects, for up to 75% cost of the works and its installation.Authorities overseeing every electric subsector are committed to ensuring that 25% of service needs by 2025 shall be supplied from renewable energy sources. By 2015, at least 10% of the energy purchased by the distributors and trading companies shall originate from renewable sources of energy.