Decree 829 of 2020 - Tax incentives for non-conventional renewable energies - streamlined procedure

With the issuance of Decree 829 of 2020, the National Government facilitates the process of tax incentives defined in Law 1715 of 2014 by delegating the Mining and Energy Planning Unit (UPME) as the unique entity to evaluate and certify projects of non-conventional sources of energy. Companies will thus be able to access the tax benefits in 45 days instead of 3 months.  

 

Through the National Development Plan 2018-2022 and Law 1715 of 2014, the National Government granted tax incentives for projects from Non-Conventional Sources of Energy (income deduction, VAT exclusion, exemption from tariff duties and depreciation accelerated) and energy efficiency (income deduction).     

 

The updated regulations expand the investments that qualify as RES or EE investments, including activities such as plant expansion and process improvements.  The decree also adds required legal studies to the list of activities that are already considered as valid investments. The non-electrical uses of RES are now included within the scope of EE for purposes of the special deduction.

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