Section 3Sec./Art. 3

Development Incentives. - The following incentives shall be available to qualified footwear, leather goods and tannery enterprises for a maximum period of ten (10) years from the effectivity of this Act:

(a) Entitlement to zero (0) duty on imported capital equipment, including machinery equipment, tools for basic components, parts and accessories, including chemicals falling within Chapter 69 of Section Xlll, Chapter 82 of Section XV, Chapters 84 and 85 of Section XVI, and Chapter 90 of Section XVIII of the Tariff and Customs Code of the Philippines, as amended;

(b) Additional deduction from gross income of fifty percent (50%) of the expenses incurred in training programs approved by the appropriate agency which shall be deductible during the fiscal year when the expenses were incurred;

(c) Inclusion, promotion, advertising and sale of locally manufactured finished products of these industries in the government's duty-free shops; and

(d) Tax credits on domestically purchases supplies, raw materials and semi-manufactured products equivalent to one hundred percent (100%) of the value of national internal revenue taxes and customs duties that would have been paid had these items been imported.