Argentina’s Federal Administration of Public Income (AFIP) has published a resolution (Resolución General 4101-E) in the country’s official journal, with which it exempts the purchase, import or production of components used in the construction of renewable energy infrastructures.
The resolution, which will come into force on Aug. 10, will implement a measure included in Argentina’s renewable energy law (Ley 27.191) issued in March 2016. Under the law’s provisions, developers of renewable energy projects will be entitled to obtain the anticipated recovery of VAT for the capital goods included in their projects and, at the same time, to apply the accelerated depreciation of the goods to the income tax.
The exemption will be granted to new renewable energy investments that have been granted approval from the Argentinean Ministry of Energy and Mines, and that are proposed by private persons, entreprises or entities included in VAT register.
Argentina’s renewable energy law, issued in March of last year, established the mechanisms needed to achieve the renewable energy goals of 8% in 2017 and 20% in 2025. One of the main points within the Decree was the creation of a trust fund for renewable energy, the Fund for the Development of Renewable Energies (Fondo para el Desarrollo de las Energias Renovables). The law also included provisions for the bidding of renewable energies. The law also established more favorable conditions for the projects that use more national components. Instruments are also provided to encourage local production of components for renewable energy projects.
The law has so far enabled the allocation of around 1 GW of large-scale PV capacity under the first two bidding rounds of the program Renovar, while a third auction is planned for August of this year. On top of this, the Argentinean Parliament is currently discussing a law draft for distributed generation, which will very likely be promulgated in the first half of 2018.