Developers of Renewable Energy facilities, including hybrid and cogeneration systems using both RE sources and conventional energy, for both power and non power applications, may enjoy the following incentives upon certification by the DOE under the Renewable Energy Act of 2008.

• Income tax holiday for seven years;
• Duty-free importation of RE machinery, equipment and materials including control and communication equipment;
• Special realty tax rates on equipment and machinery not exceeding 1.5% of their original cost less accumulated normal depreciation or net book value;
• Net operating loss during the first 3 years of commercial operation which had not been previously deducted from gross income shall be carried over as deduction from gross income for the next 7 consecutive taxable years immediately following the year of such loss (NOLCO);
• Corporate tax rate of 10% on its net taxable income after 7 years of ITH;
• Accelerated depreciation of plant, machinery and equipment may be applied if the project fails to receive an ITH before full operation;
• 0% Value-Added Tax rate on the sale of fuel or power generated from RE sources. Zero rated VAT on purchases of local supply of goods, properties and services needed by RE developers in the development, construction and installation of its plant facility as well as the exploration and development of RE resources and its conversion into power;
• Tax exemption on carbon credits;
• Cash incentive of Renewable Energy developers for Missionary Electrification. A cash generation-based incentive per kilowatt hour equivalent to 50% of the universal charge for the power needed to service missionary areas chargeable against the universal charge for missionary electrification;
• Tax credit on domestic capital equipment and services;
• Exemption from universal charge;
• Option to pay transmission and wheeling charges of on a per kilowatt-hour basis at a cost equivalent to the average per kilowatt-hour rate of all other electricity transmitted through the grid.