Policy status:In Force
Date Effective:2003
Policy Type:Economic Instruments>Fiscal/financial incentives
Agency:Ministry of Economy
Legal References:Royal Decree 252/2003
Climate Change Description:On 14 March, the Spanish government enacted a modified tax code, Royal Decree 252/2003, which includes a 10% deduction for companies investing in renewable energy sources. It had been approved 28 Feb by the Council of Ministers. The new code incorporated three additions meant to elaborate on environmental protection provisions which are included in Article 35, Section 4 of the old Corporate Tax Law (43/1995). Whereas Corporate Tax Law 43/1995 vaguely outlined the sorts of environmental investments to be considered deductible, three sections--Sections 4, 5, and 6--of Article 1 in Royal Decree 252/2003 itemise and codify these deductible investments. The new law modifies Article 40 of the Corporate Tax Regulation (Royal Decree 537/1997) and states that taxpayers may take a 10% deduction on investments in property "destined for environmental protection." These include installations aimed at reducing industrial air and water pollution, and at treating industrial waste in ways that are "correct from an environmental point of view." This includes investments in solar energy, biomass fuel from forest or agricultural waste, natural gas created from solid waste or water treatment waste, and ethanol and biodiesel created from treated oils or plant matter.

Last modified: Mon, 09 Jul 2012 11:41:31 CEST