TO help drive alternative fuel and clean energy investments, the Department of Energy (DoE) has issued the guidelines for hydrogen investment incentives in the Philippines

"The agency has introduced the incentives about hydrogen introduced through Department Circular No. 2024-01-0001 titled 'Providing a National Policy and General Framework, Road map, and Guidelines for Hydrogen in the Energy Sector," the DoE said over social media.

"Because of this, stakeholders in the production and distribution of hydrogen energy, research and development stakeholders establishing infrastructure support, and suppliers of hydrogen fueling stations serving the transportation sector will now benefit from several perks and incentives issued by the government," it added.

The DoE said that stakeholders whose projects have the purpose of producing, importing, and exporting green hydrogen and its derivatives for power generation could avail of benefits under the Renewable Act of 2008, such as an income tax holiday; exemption from duties on renewable energy machines, equipment and materials; and specialty realty tax rates on equipment and machinery.

They can also get incentives for net operating loss carry-over, corporate tax rates, accelerated depreciation, a zero-percent value-added tax (VAT) rate, tax exemption of carbon credits, and tax credits on domestic capital equipment and services related to equipment and machinery installation.

For stakeholders whose activities are related to applying hydrogen to the transport sector using fuel cells, they can avail of incentives from the Electric Vehicle Industry Development Act, such as benefits provided by the Corporate Recovery and Tax Incentives for Enterprises (Create) Act for manufacturing and assembly of hydrogen fuel stations; benefits by the Create Act for the importation of capital and equipment and components for the construction of the fuel stations; and the importation of completely built hydrogen fuel stations being exempted from the payment of duties for eight years.

Meanwhile, projects that involve hydrogen and its derivatives from nuclear energy shall undergo an evaluation process for incentives under the Energy Efficiency and Conservation Act.