Fiscal Incentives.
Section 24
SEC. 24. Fiscal Incentives. - (a) Manufacturing The following activities shall undergo an evaluation process to determine their inclusion in the strategic investment priority plan and possible entitlement to the incentives and for the length of time as provided under Executive Order No. 266, otherwise known as the "Omnibus Investments Code of 1987", as amended by Republic Act No. 11534, otherwise known as the "Corporate Recovery and Tax Incentives for Enterprises Act" and Title XIII of the National Internal Revenue Code of 1997 as amended by the Corporate Recovery and Tax Incentives for Enterprises Act, and other applicable laws: (1) Manufacture and assembly of EVs, charging stations, batteries, and parts and components; and (2) The establishment and operations of charging stations and other related support infrastructure such as research and development centers, training centers, testing centers, and waste treatment facilities. In addition, the DTI, through the BOI, shall recommend an EV incentive strategy to the Fiscal Incentives Review Board for approval, as part of the manufacturing component of the CREVI, similar to Executive Order No. 182, series of 2015, otherwise known as the "Comprehensive Automotive Resurgence Strategy Program". The incentive strategy shall: (1) Narrow the cost gap between the EVs and traditional motor vehicles and enable the shift of the local traditional motor vehicle industry to EVs; (2) Provide time-bound, targeted, performance-based, and transparent fiscal and non-fiscal support in order to attract EV and EV parts manufacturing, particularly electronic parts and other strategic components, batteries, charging stations, and the establishment of testing facilities; and (3) Set local production targets to be achieved within eight (8) years from the promulgation of the EV incentive strategy, subject to extension as determined by the DTI. The DTI, through the BOI, shall establish the application and selection process for enrollment and qualification of participants, imposing such terms and conditions as it may deem necessary to promote the objectives of the incentive strategy: Provided, That registered participants shall not be allowed to register the same activity or product under any other program granting incentives. (b) Importation The importation of completely built units of EVs shall be entitled to the incentives under Republic Act No. 10963, otherwise known as the "Tax Reform For Acceleration Inclusion (TRAIN)": Provided, That in the case of imported electric jeepneys and electric tricycles, the Department of Finance, upon recommendation of the DTI, may suspend the exemption in order to protect local manufacturers. The importation of completely built units of charging stations shall be exempt from the payment of duties for eight (8) years from the effectivity of this Act. The importation of capital equipment and components used in the manufacture or assembly of EVs and construction or installation of charging stations shall undergo an evaluation process to determine their inclusion in the strategic investment priority plan and possible entitlement to the incentives and for the length of time as provided under the Omnibus Investments Code of 1987, as amended, Title XIII of the National Internal Revenue Code of 1997, as amended, and other applicable laws. (c) Utilization A thirty percent (30%) discount for BEVs and fifteen percent (15%) discount for HEVs from the payment of the motor vehicle user's charge imposed by the LTO under Republic Act No. 8794, otherwise known as "Motor Vehicle User's Charge Act", as well as vehicle registration and inspection fees shall be available for eight (8) years from the effectivity of this Act.