Tax Exemptions for Renewable Energy

Until 2023 renewable energy projects in Nicaragua may opt for the exemption of import duty on machinery and equipment, VAT, income tax and municipal taxes.

Wednesday, December 6, 2017

The National Assembly approved a reform proposed by the Ortega administration to extend the term of tax benefits for energy generation projects with renewable sources. The law established that the maximum period to opt for exemptions was January 2018, but now they will remain in place until January 2023.

See also "Central America: $ 1.2 billion in energy projects" reports that "...Jimmy Blandón, deputy of the Constitutionalist Liberal Party (PLC) said that his caucus "supports the reform because it encourages private and national investment to stop using fossil resources. Generation with renewable sources will allow the price of energy to go down, as long as the energy matrix continues to change."

"... Jenny Martínez, deputy of the Sandinista National Liberation Front (FSLN), said there is an encouraging plan to continue changing the electricity generation matrix and that extending the deadline for granting tax incentives will encourage the necessary investments for hydroelectric, wind, photovoltaic, and geothermal projects."

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From a statement issued by the National Assembly:

The National Assembly with 84 votes approved on June 2, Law Reform Law 532, Law for the Promotion of Electricity Generation from renewable sources.

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