Section 13Sec./Art. 13

Incentives. -

(a) Any provision of law to the contrary notwithstanding in-country enterprises engaged or proposing to engage in the development, production, manufacturing, assembly, servicing, or operation of materiel for the Government may be registered with the BOI or with Investment Promotion Agencies (IPAs) and may avail of the incentives under Republic Act No. 11534 or the "Corporate Recovery and Tax Incentives for Enterprises Act."

In the interest of national security, the BOI shall adopt a special procedure in the processing of applications for the registration of enterprises that desire to participate in the industry and offer goods or services to the Government under the SRDP.

The development, production, manufacturing, assembly, servicing, or operation of materiel shall be included by operation of law in the SIPP every year after the effectivity of this Act until otherwise removed by the BOI or the President: Provided, That such removal shall not be interpreted as a bar or restriction on the BOI from later including the same;

(b) Government financial institutions are highly encouraged to support the defense and allied industries by formulating and extending financial products that would benefit its hastened development;

(c) In addition to the incentives under existing laws, in-country enterprises engaged in the development, production, manufacturing, assembly, servicing, or operation of materiel registered with BOI and IPAs shall be exempt from national internal revenue taxes, value-added tax, and customs duties on the importation of capital equipment, raw materials, spare parts, or accessories to be used in the development, production, manufacturing, assembly, servicing, or operation of materiel, only in cases when the same are not locally available; and

(d) As provided under existing laws, rules and regulations, the DOST, IPOHL, NEDA through the National Innovation Council (NIC), and other relevant government agencies and institutions are hereby directed to provide technical and financial assistance, incentives, and mechanisms for defense innovations particularly to Filipino inventors, investors, scientists, engineers, and innovators.