On November 4, 2015, the Colombian National Government has released Decree 2143 of 2015, by which the fiscal and customary incentives for investments in non conventional energy sources are regulated, according to the outline of Law 1715 of 2014. For these purposes, Decree 2143 of 2015 provides the following tax benefits:
- 50% income tax deduction for the amount of investment in research, management, or production and use of energy generated by non-conventional energy resources;
- VAT exemption on the acquisition of equipment and machinery, services, whether in Colombia or from abroad, which are used for investing in the production and use of renewable energy;
- Customs duty exemption for investors in new projects for promoting renewable energy;
- Increased depreciation of equipment and machinery for energy generators who invest in new equipment, machinery and certain construction projects initiated after the entry into force of Law 1715 of 2014. This tax incentive allows an accelerated depreciation up to an annual rate of 20%.
