The Board of Investments has revoked the Income tax holidays for power generation projects using conventional fuels such as coal, diesel, bunker and natural gas.
This includes revenues coming from sales in the Wholesale Electricity Spot Market (WESM).
On May 8, 2023, the BOI released memorandum circular 2023-003, amending the guidelines on energy of the 2022 Strategic Investment Priority Plan. However, the BOI clarified that power generation projects using conventional fuel wastes, heat, and other waste, as well as the creation of battery energy storage systems (BESS), are still included in the 2022 SIPP.
The BOI explained that BESS projects should have access to all electricity sources to provide ancillary service to the national grid.
BOI undersecretary and managing head Ceferino S. Rodolfo said there is a need to clarify which revenues from electricity sales are entitled to income tax holidays.
“Revenues from sales of electricity sourced by power generation projects utilizing conventional fuels, waste heat, and other wastes from the Wholesale Electricity Spot Market shall not be entitled to ITH,” Rodolfo added.
