All service contractors may avail of the incentives or privileges under P.D. 1174 amending P.D. 972, otherwise known as “The Coal Development Act of 1976.”

• Cost reimbursement of operating expenses up to 90% of gross proceeds from production with carry forward
  of unrecovered cost;
• Special allowance of up to 40% of the net proceeds;
• Exemption from all taxes except income tax;
• Exemption from payment of tariff duties and compensating tax on the importation of machinery, equipment,
  spare parts and all materials for coal operations;
• Entry of alien technical and specialized personnel; and,
• Right of ingress to and egress from the COC area.