The proposed tax incentives and special rules aim to boost Chile’s green hydrogen industry and strengthen its global leadership in clean fuel production.
Chile’s Ministry of Finance has submitted a bill to the Chamber of Deputies to promote the green hydrogen (H2V) industry on 19 August 2025.
The initiative, developed with the Ministries of Energy and Economy, Development and Tourism, aims to strengthen the country’s National Green Hydrogen Strategy and make Chile a global leader in producing and exporting this clean fuel.
The bill introduces a temporary tax credit for companies that purchase green hydrogen or its derivatives, such as ammonia or methanol, from local producers. The total value of the credit could reach up to USD 2.8 billion. The benefit will apply only to first-time purchases and will be distributed through annual competitions for new production projects between 2025 and 2030.
The legislation also establishes a special tax framework for producers in the Magallanes and Chilean Antarctic Region. Producers in this area will be exempt from the First Category Tax, can request VAT exemptions on imported capital goods, and must contribute to regional development according to existing law.
The bill has been sent to the Finance Committee for legislative consideration.
