Section 7Sec./Art. 7

Section 45 of Republic Act No. 9003 is hereby amended to read as follows:

"SEC. 45. Incentives.

"(a) Rewards and recognitions, monetary or otherwise, shall be provided to individuals, private organizations and entities, obliged enterprises, and PROs, including nongovernment organizations, that have undertaken outstanding and innovative projects, technologies, processes and techniques or activities in reuse, recycling, and reduction. Said rewards shall be sourced from the Fund herein created.

"(b) An incentive scheme is hereby provided for the purpose of encouraging LGUs, enterprises, or private entities, including obliged enterprises, PROs, and NGOs, to develop or undertake an effective solid waste management, including recovery and diversion of plastic product footprint, or actively participate in any program geared towards the promotion thereof as provided for in this Act, as amended.

"(1) Fiscal Incentives

"(a) Tax incentives Any provision of law to the contrary notwithstanding, obliged enterprises or PROs acting on their behalf, and other registered business enterprises may apply for incentives following the approval process provided under Title XIII (Tax Incentives) of the National Internal Revenue Code of 1997, as amended, for eligible activities: Provided, That such activities shall undergo the standard processes in the identification of qualified activities under the Strategic Investment Priority Plan (SIPP).

"(b) The EPR expenses of obliged enterprises, PROs, and private enterprises shall be considered as necessary expenses deductible from gross income subject to the substantiation requirements for necessary business expenses deductible from gross annual income in accordance with Section 34(A)(1) of the National Internal Revenue Code of 1997, as amended.

(c) Tax and Duty Exemption of Donations, Legacies and Gift x x x.