|Policy Status||In force|
|Date Promulgated||19 April 2006|
|Agency||•Ministry of Federal Planning, Public Investment and Services
•Federal Secretariat of Energy (FSE)
•Taxes and Tax Incentives
•Biofuels for Transport
|Description||In April 2006 the Argentine government passed Federal Law No. 26093, the Biofuels Law, enacted by its Regulatory Decree No. 109/2007 in February 2007. The Decree set forth guidelines to promote the development of biofuels. The law also requires that all vehicle fuels contain at least 5% biodiesel or ethanol (B5 and E5) starting in 2010.
The law establishes criteria for plants to be licensed for biofuels production, including biofuel quality requirements and environmental impact assessment procedures. It also establishes criteria for beneficiaries of the benefits enacted by the law, focusing on supporting SMEs, promoting agribusiness, and enhancing regional economies.
The law establishes promotional tax incentives for producers that comply with certain requirements, establishing that the majority ownership of biodiesel production facilities corresponds to farming and agricultural firms. It provides for tax breaks for investing companies, lower export taxes for biodiesel, VAT reimbursement and accelerated depreciation of assets for income tax purposes. In addition, biofuels are exempt from the Hydrocarbon and Diesel taxes (20% each).
In January 2008, a new law was enacted specifically to promote the production of sugar-cane based biofuel, for domestic consumption and export. Biofuel producers going into business after the laws enacted, 2 January 2008, must be Argentine nationals or companies run by Argentine nationals to qualify for benefits under the new law.
|Legal References||Federal Law No. 26093, 19 April 2006|National Decree No. 109/2007, 9 February 2007|Federal Law No. 26334, 2 January 2008|