Policy status:In Force
Date Effective:2007
Date Amended:


Policy Type:Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Economic Instruments>Fiscal/financial incentives>Taxes, Economic Instruments>Fiscal/financial incentives>Tax relief, Economic Instruments>Fiscal/financial incentives
Policy Target:Bioenergy>Biofuels for transport
Policy Sector:Transport
Agency:Ministry of Energy and Mining
Legal References:Resolution 37/2016

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 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 2010 the law required at least 5% biodiesel or ethanol blend in the gasoline. The blend was raised to 10% over couple of years.


On April 2016, the Ministry of Energy and Mining introduced a resolution raising the required blending mandate for ethanol in regular gasoline from 10 to 12%.

Last modified: Thu, 01 Mar 2018 17:23:00 CET