Renewables in Neuquén: Property and Stamp Tax exempt for 20 years, Turnover Tax 0% for the first 5

Neuquén created a provincial regime to promote electricity generation from renewable sources that grants, to projects located in the province framed under national Laws 26.190 and 27.191, three provincial tax benefits: (a) Property Tax — a twenty (20)-year exemption on the real estate or part thereof allocated to installing the renewable generation plants; (b) Stamp Tax — a twenty (20)-year exemption on the acts, contracts or operations linked to the development, construction, technology acquisition, civil/electromechanical/electrical works, generation, supply and operation and maintenance of the plants; (c) Turnover Tax — a rate of zero percent (0%) on the renewable-generation activity during the first five (5) years (once that term expires, the Fiscal Consensus rate applies, provincial Law 3090). Adhesion to national Law 27.191 is done with reservation of provincial tax powers and with the exception of the first paragraph of Art. 17 of that law. The regime sets no investment floor and applies to any plant scale (solar/wind/hydro/other renewables). The benefits are not automatic, and the law says so itself: the exemptions "begin to apply from the approval, by the enforcement authority, of the project for electricity generation from renewable sources" —the authority being the Ministry of Economy and Infrastructure (art. 6)—; to gain access one must "prove the absence of debt in the taxes hereby exempted or having regularized it through inclusion in payment schemes"; and failure to comply with the approved project "gives rise to the revocation of the benefits established by this law and to the claim of the taxes not paid, plus their interest and adjustments" (art. 5). verif · Apr 25, 2018 ↗

For each project, the exemptions apply from the moment the enforcement authority approves it, not from the enactment of the law. The regime became operational with regulatory Decree 355/2019, which the Provincial Revenue Directorate itself publishes as the regulation of Law 3108. prob · Apr 25, 2018 ↗

Natural or legal persons holding investments or concessionaires of projects to install electricity-generation plants from renewable sources (solar, wind, hydro and other renewables) located in Neuquén, framed under national Laws 26.190 and 27.191. It covers any plant scale, which makes it the fiscal gateway for the mid-sized and small renewable developer/supplier, complementary to Law 3502 ("Invest in Neuquén", floor USD 500,000). prob · Apr 25, 2018 ↗