Several fiscal incentives to promote RE and EE were included in the Finance Act No. 13 of 2010 and came into effect on January 1, 2011.Incentives for RE are as follows:
a) Import Duty Exemptions are granted for “machinery, equipment materials and parts for the manufacture or assembly of solar water heaters”.
b) 0-Rated VAT granted for solar water heaters, solar PV panels and wind turbines
c) Tax Credit for Solar Water Heaters: Where an individual, in a year of income commencing 1st January, 2011, purchases solar water heating equipment for household use, that individual shall be entitled to a tax credit of twenty-five per cent of the cost of the solar water heating equipment up to a maximum of ten thousand dollars (maximum tax credit of TT $2500.00)
d) Wear and Tear Allowance on 150% of expenditure incurred on:
- The acquisition of plant, machinery, parts and materials for use in the manufacture of solar water heaters
- The acquisition of wind turbines and supporting equipment; solar photovoltaic systems & supporting equipment; and solar water heaters.
Energy Service Companies (ESCOs) for the conduct of energy audits can be expected to play an increasingly important role, and T&T will be seeking to build local capacity in the conduct of energy audits and other energy services. Incentives currently being offered to encourage the conduct of energy audits in Trinidad and Tobago are as follows:
e) 75% Accelerated Depreciation- Where a certified ESCO has acquired plant and machinery for the purpose of conducting energy audits there shall be allowed an amount of seventy- five per cent of the cost incurred in the year of acquisition, and this amount shall be the only allowance on this expenditure for that year.
f) 150% Tax Allowance (Company that engages an ESCO)- Allowance of 150% of the expenditure incurred by a company that engages another company certified as an Energy Service Company by the Minister with responsibility for energy, for the:
- Design of energy saving systems, and
- Installation of the energy savings systems in the company