|Year Implemented||2009 (amended 2010)|
|Policy Status||In force|
|Agency||•National Energy Commission|
•Taxes and Tax Incentives
|Policy Sector||•Heating and Cooling (Domestic / Industrial Process)|
|Description||Voted in November 2009, the Regulatory Framework for Solar Thermal provides solar water heater (SWH) constructors with a tax rebate programme, valid until 2013.The law also establishes a technical standard and certification systems.
Construction companies and housing developers incorporating solar systems producing at least 30% of a household's annual hot water demand are eligible for tax credits. They can also apply for a total or partial deduction, from the provisional payments included in their Income Tax, of the cost of the solar heater system (device and installation).
Tax deductions are progressive according to the value of the household property (construction and terrain), with low-income projects receiving the highest exemption rates. Properties of a value below Unitades de Fomento (UF), the inflation-adjusted accounting currency, 2, 000 benefit from a tax deduction of the total amount of the SWH device, properties of a value ranging from UF 2, 000 and 3, 000 benefit from an deduction worth 40% of the system's cost while properties that worth UF 4, 500 and above are guaranteed a 20% deduction.
Since August 2010, construction firms can claim for 100% deduction of the solar home system device installation cost on homes worth up to UF 4, 500, USD 176, 000 equivalent.