Section 14Sec./Art. 14

Incentives.- The private sector may avail of the following incentives to develop the local seed industry:

a. Individuals, farmers' organizations, cooperatives, and corporations, wholly owned by Filipinos shall be entitled to technical assistance from the Government, including training in seed technology, and availment of seeds and results of basic research studies;

b. Technical equipment used in seed processing, sowing, meristem culture, storage and quality testing by individuals, farmers' organizations, cooperatives and corporations, wholly owned by Filipinos shall be exempted from duties and taxes during their first five (5) years of operation subject to the following conditions:

1. The equipment are not manufactured domestically in sufficient quantity of comparable quality and at reasonable prices;

2. They are reasonably needed and will be used exclusively by the importer in the operation of its business;

3. Approval of the Council was obtained prior to the importation;

4. In case the importer transfers, sells, or disposes of the equipment within five (5) years from acquisition without prior approval of the Council the former shall be solidarily liable with the transferee to pay double the amount of tax exemption given it. The Council may permit transfer, sale or disposition of said equipment within the said five (5) years if made to another person or entity enjoying similar incentives, or for reason of proven technical obsolescence, or for purposes of replacement to improve and expand the operations of the importer;

5. The importer shall not enjoy a similar incentive under the Omnibus Investments Code of 1987.

However, cooperatives organized and registered under Republic Act No. 6938 shall be covered by Articles 61, 62, and 63 of the said law pertaining to the tax exemption privileges of cooperatives; and

6. Expenses for research, development and extension of private Filipino seed producers shall enjoy a two hundred percent (200%) deduction from their gross income for the first five (5) years of operation in accordance with the rules and regulations to be promulgated by the Department of Finance within ninety (90) days from the effectivity of this Act.