Section 10
SEC. 10. Chapter II of Title IV of the Code, entitled "Additional Incentives to Pioneer Enterprises" including Article 46 in its entirety, is hereby repealed and, in lieu thereof, a new Chapter II is therein inserted which shall read as follows: "Chapter II.—OTHER INCENTIVES "ART. 46. The following incentives may be granted to certain registered enterprises and investors: "(a) Incentives for Energy-Saving Projects.—Any project for the installation of equipment accredited as an energy-saving device by the Board and accordingly included in the Investment Priorities Plan shall be considered as replacement investment and shall be granted the incentives provided in paragraphs (a) and (b) of Article 45 without repayment of the taxes and duties waived on the importation of machinery and equipment and accompanying spare parts or of the tax credit in case of purchase of domestic machinery, equipment or spare parts. "(b) Incentives for Industry Rationalization Programs.—Whenever a rationalization program for an industry is carried out pursuant to the Investment Priorities Plan or involves a new or expanded production capacity of a project under the program, the industry or project may be granted all the incentives provided in Article 45 of this Code. However, if the rationalization program involves replacement investment, it shall be entitled only to the incentives mentioned in paragraphs (a) and (b) of the said Article without repayment. "(c) Special Incentive for Investment in National Development Fund.—If an investment is made in national development fund certificates issued under Executive Order Numbered 842, in lieu of direct investment in registered pioneer enterprises as provided in subparagraph (a), Article 44 of this Code, an investment allowance shall be allowed from taxable income but not to exceed ten percent (10%) thereof: Provided, That if the certificates are transferred or redeemed by the fund upon the request of the investors within three years, the taxpayer shall lose the benefit of this deduction and his income tax liability shall be recomputed and lie shall pay whatever additional sum be due plus interest thereon within thirty (30) days from the date of the redemption."