Law Promoting hydrogen innovation, production and use as a fuel (Directive 002 from MINAE)
The Law mandates that institutions within the energy and environment areas develop an action plan, within their competences, to promote hydrogen innovation, production and use as a fuel. It declares these activities as public interest. The law was enacted in 2018 and in 2021, a draft was proposed (and no update is known by February 2025)
The incentives from the 2021 proposal include Tax exemptions. No taxes, fees, or consular duties on the import or local purchase of machinery, equipment, accessories, parts, compressors, storage systems, fuel cells, cargo vehicles, cars, and other necessary items; Tax exemptions for establishment. No taxes on the import or local purchase of goods needed to set up new companies, or for existing companies joining the green hydrogen industry; Income tax exemption. Exemption from income tax and any other tax based on gross or net profits and dividends paid to shareholders involved in green hydrogen research, production, and transportation; Public bank support. Public banks can provide financing for green hydrogen projects; Environmental viability assessments for green hydrogen production projects will be expedited with priority review. Environmental impact studies or permits must be resolved within 90 calendar days; (6) Authorizes existing power plants with hydropower concessions to allocate their electricity production to green hydrogen production
The incentives from the 2021 proposal include Tax exemptions. No taxes, fees, or consular duties on the import or local purchase of machinery, equipment, accessories, parts, compressors, storage systems, fuel cells, cargo vehicles, cars, and other necessary items; Tax exemptions for establishment. No taxes on the import or local purchase of goods needed to set up new companies, or for existing companies joining the green hydrogen industry; Income tax exemption. Exemption from income tax and any other tax based on gross or net profits and dividends paid to shareholders involved in green hydrogen research, production, and transportation; Public bank support. Public banks can provide financing for green hydrogen projects; Environmental viability assessments for green hydrogen production projects will be expedited with priority review. Environmental impact studies or permits must be resolved within 90 calendar days; (6) Authorizes existing power plants with hydropower concessions to allocate their electricity production to green hydrogen production
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