Section 56Sec./Art. 56

Incentives. To operate the installation and the utilization of pollution control facilities, the following incentives are hereby granted:

(a) exemption to the extent of fifty (50) per cent of tariff duties and compensating tax for the importation of pollution control equipment, devices, spare parts and accessories for a period of five (5) years from the effectivity of this Decree subject to the conditions that will be imposed by the Council.

(b) a tax credit equivalent to fifty (50) per cent of the value of the compensating tax and tariff duties that would have been paid on the pollution control equipment, devices, spare parts and accessories had these items been imported shall, within a period of seven (7) years from the effectivity of this Decree be given to the person or firm who or which purchases them from a domestic manufacturer, and another tax credit equivalent to twenty-five (25) per cent thereof shall be given to the said manufacturer subject to such conditions as may be imposed by the Council; and

(c) deductions equivalent to fifty (50) per cent of the expenses actually incurred on research projects undertaken to develop technologies for the manufacture of pollution control equipment which have been proven effective and commercially reproducible, from the taxable income of the person or firm actually undertaking such projects subject to the conditions that may be imposed by the Council.

The pollution control equipment, devices, spare parts and accessories acquired under this Section shall not be sold, transferred or disposed of within five (5) years from the date of acquisition without the prior approval of the Council otherwise the importer or purchaser shall pay twice the amount of the tax exemption or tax credit granted.