Law 26190. National Promotion Scheme For The Use Of Renewable Energy Sources For The Production Of Electrical Energy. Modification.

Original Language Title: Ley 26190. Régimen de Fomento Nacional para el uso de Fuentes Renovables de Energía destinada a la Producción de Energía Eléctrica. Modificación.

Read the untranslated law here: https://www.boletinoficial.gob.ar/#!DetalleNorma/11495233/20160703

ELECTRIC power electric power law 27191 law 26190. National promotion scheme for the use of renewable energy sources for the production of electrical energy. Modification. Adopted: 23 September 2015 fact promulgated: 15 October 2015 the Senate and Chamber of deputies of the Argentina nation gathered in Congress, etc. they attest to the force of law: chapter I amendments to the Law 26.190, "Of building national scheme for the use of sources renewable energy destined to la production of energy electric" article 1 - replace article 2 of the Law 26.190, "Of building national scheme for the use of sources renewable energy destined to la production of energy electric", with the following : Article 2: scope - sets as an objective of the present regime achieve a contribution of renewable sources of energy to reach the eight percent (8%) of the national electric energy consumption, to December 31, 2017.
Article 2 ° - replacements paragraphs a) and b) of article 4 of the Law 26.190, "Of building national scheme for the use of sources renewable energy destined to la production of energy electric", by the following: to) renewable sources of energy: are the renewable fossil energy sources not suitable to be exploited in a sustainable manner in the short, medium and long term : energy wind, solar thermal, solar photovoltaic, geothermal, tidal, wave, sea currents, hydraulic, biomass, landfill gas, gas plants debugging, biogas and biofuels, with the exception of the uses provided for in the Law 26.093. (b) the power limit established by this Act for hydroelectric projects, will be up to fifty megawatt (50 MW).
Article 3 - Replace article 7 of the Law 26.190, "Of building national scheme for the use of sources renewable energy destined to la production of energy electric", by the following: article 7 ° https://www.boletinoficial.gob.ar/pdf/linkQR/VWoxT3hYandOL1JycmZ0RFhoUThyQT09: investment regime - instituting a regime of investment for the construction of new works for the production of electric power generated from renewable energy sources that it be governed with the scope and limitations established in this law.
Article 4 - Replace article 9 of law 26.190, "Of building national scheme for the use of sources renewable energy destined to la production of energy electric", by the following: article 9: benefits - beneficiaries mentioned in article 8 devoted to the realization of projects of production of electricity from renewable energy sources in terms of this law and complying with the conditions laid down in this the promotional benefits provided for in this article shall apply, starting from the approval of the respective project by the enforcement authority, provided that the project is effective beginning of execution before December 31, 2017, inclusive. Means that there is effective beginning of execution when made expenditures of funds associated with the project for an amount not less than fifteen percent (15%) of the total investment planned before the date indicated above. Accreditation effective beginning of execution of the project shall be carried out by sworn statement presented to the enforcement authority, the conditions that set the rules. The applicable promotional benefits are as follows: 1. value added and income tax tax. In relation to the tax to the added value and the income tax, shall apply the treatment dispensed by 26.360 Act and its regulations, which for this purpose shall remain in force until the expiry of the "regime of building national for the use of sources renewable energy destined to la production of energy electric", with the modifications set out below : 1.1. This tax treatment shall apply to the execution of infrastructure works, including capital goods, civil, electromechanical and works of Assembly and other related services that integrate the new generation plant or be integrated into existing plants and form an inseparable set to your suitability for the production of electrical energy from renewable sources which is defined in subsection a) of article 4 of this law. 1.2 the benefits of depreciation accelerated in the income tax and early repayment of value added tax shall not be exclusive each other, allowing beneficiaries to access simultaneously to both tax treatments. 1.3. the benefit of the early repayment of the value added tax, will be effective after elapsed at least a (1) fiscal period from one in which the respective investments have been made and shall apply with respect to the tax VAT invoiced to beneficiaries by investments that carry out until the conclusion of the respective projects within the time limits laid down for the entry into operation of each one of them. 1.4. with respect to the benefit of depreciation accelerated investments covered by the present regime in the income tax, beneficiaries who perform them may choose to practice the respective amortization from the fiscal period of empowerment of the good, in accordance with the rules laid down in articles 83 and 84, as appropriate, of the earnings (t.o. 1997) tax law and its amendments , or in accordance with the regime which provided below: 1.4.1. For investments made prior to 31 December 2016: 1.4.1.1. In depreciable property acquired, processed, manufactured or imported in this period: at least in two (2) annual, equal and consecutive installments. 1.4.1.2. in infrastructure projects initiated in this period: at least in the amount of annual, equal and consecutive installments that emerges from considering his life reduced to fifty percent (50%) of the estimated.
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1.4.2. for investments made before December 31, 2017, including: 1.4.2.1. In depreciable property acquired, processed, manufactured or imported in this period: at least in three (3) annual, equal and consecutive installments. 1.4.2.2. in infrastructure projects initiated in this period: at least in the amount of annual, equal and consecutive installments that emerges from considering his life reduced to sixty percent (60%) of the estimated. Once opted for one of the redemption procedures outlined above, the same shall be reported to the enforcement authority and the Federal Administration of public revenues, in the form, term and conditions they established and should be applied - without exception-to all capital investments which are carried out for the implementation of new projects or for the expansion of the productive capacity of existing projects including those that are required during operation. 2. compensation of losses with gains. For the purposes of the application of the provisions of article 19 of the law on tax gains (t.o. 1997) and its modifications, by the beneficiaries of the present regime, the period to compensate for the losses in the second paragraph of the aforementioned rule extends to ten (10) years. 3. tax on minimum presumed income. The goods affected by the activities promoted by this law, not be integrated based on imposition of the tax on minimum presumed income 25.063 statutory, or that in future complement, modify or substitute, since the beginning of the effective execution of the works, as previously defined in this article, extending such benefits until the eighth period including , from the date of implementation of the respective project. 4. deduction of the financial burden of the financial liability. For the purposes of the application of article 94 paragraph 5) and article 206 of the Law 19.550 and its modifications, can deduct losses of the company interests and the exchange differences arising from the financing of the project promoted by this law. 5. exemption from the tax on the distribution of dividends or profits. Dividends or profits distributed by holders companies target investment projects of the present regime will not be achieved by the tax at the rate of ten percent (10%), established in the last paragraph of article 90 of the law of tax gains (t.o. 1997) and its modifications, incorporated by law 26.893 , to the extent that the same are reinvested in new infrastructure projects in the country. 6. tax certificate. The beneficiaries of this scheme who in their investment projects prove irrefutably a sixty percent (60%) of integration of national component of electromechanical installations, excluding civil works, or the minor percentage attesting to the extent that effectively demonstrate the non-existence of national production - which in no case shall be less than thirty percent (30%) - , they will be entitled to receive a tax certificate as an additional benefit to be applied to the payment of national taxes, for a value equivalent to twenty percent (20%) of the national component of the electromechanical installations - excluded civil-accredited work. Entry into commercial operation, the beneficiary subjects may request the enforcement authority, within the time limits and in accordance with the procedure established for this purpose, the issuance of the certified Attorney, in so far as they prove the percentage of national component effectively incorporated in the project. The tax certificate referred to in this subparagraph will be nominative and can be assigned to a third party only once. It may be used by the beneficiary subjects or assignees for the payment of all the amounts to pay tax on earnings, tax on minimum presumed income, added value, IRS, tax https://www.boletinoficial.gob.ar/pdf/linkQR/VWoxT3hYandOL1JycmZ0RFhoUThyQT09 in character of balance of affidavit and advances, whose collection is in charge of the Federal Administration of public revenues.
Chapter II second stage of the regime of national development for the use of renewable sources of energy for the production of electric power.
2018-2025 period.
Article 5 - is set as an objective of the second stage of the "regime of building national for the use of sources renewable energy destined to la production of energy electric" instituted by law 26.190, with the changes made by this Act, make a contribution of renewable sources of energy to reach the twenty percent (20%) of the national electrical power consumption , to December 31, 2025.
Article 6 ° - subjects who meet the requirements to be beneficiaries of the regime instituted by law 26.190, with the amendments made by this Act, whose investment projects are first effective run between 1 ° of January of 2018 and December 31, 2025, will be included in the mentioned regime and shall be entitled to the promotional benefits provided for in article 9 of the aforementioned Act as amended hereby, starting from the approval of the respective project by the enforcement authority, with the modifications indicated below: 1. for investments made between 1 ° of January of 2018 and December 31, 2021, inclusive, the benefit of early repayment of the value added tax will be cash then after a minimum of two (2) fiscal periods which is counted from that in which they have made the respective investments. For investments between 1 ° of January of 2022 and December 31, 2025, inclusive, this benefit will be cash after after a minimum three (3) fiscal periods counted in the same way. 2. with regard to the benefit of depreciation accelerated investments covered by the present regime in the income tax, beneficiaries who perform them may choose to practice the respective amortization from the fiscal period of empowerment of the good, in accordance with the rules laid down in articles 83 and 84, as appropriate, of the earnings (t.o. 1997) tax law and its amendments , or in accordance with the regime which provided below: 2.1. For investments between 1 ° of January of 2018 and December 31, 2021, including: 2.1.1. In depreciable property acquired, processed, manufactured or imported in this period: at least in four (4) annual, equal and consecutive installments. 2.1.2. in infrastructure projects initiated in this period: at least in the amount of annual, equal and consecutive installments that emerges from considering his life reduced to seventy per cent (70%) of the estimated. 2.2. for investments made between 1 ° of January of 2022 and December 31, 2025, including: 2.2.1. In depreciable property acquired, processed, manufactured or imported in this period: at least in five (5) year, equal and consecutive installments. 2.2.2. in infrastructure projects initiated in this period: at least in the amount of annual, equal and consecutive installments that emerges from considering his life reduced to eighty percent (80%) of the estimated.
https://www.boletinoficial.gob.ar/pdf/linkQR/VWoxT3hYandOL1JycmZ0RFhoUThyQT09 2.3. For investments made subsequent to January 1, 2026, inclusive, by projects with effective beginning of execution prior to that date: 2.3.1. In depreciable property acquired, processed, manufactured or imported in this period: at least in five (5) year, equal and consecutive installments. ((3. the provisions contained in paragraph 1) of article 9 of the Law 26.190, with the changes introduced by this law, not modified by paragraphs 1) and 2) of this article are applied in the terms provided there. 4 a the effects of the application of the provisions of subparagraphs 1), 2) and 3) preceding, 26.360 law and its regulations shall remain in force until the expiry of the second stage of the "regime of building national for the use of sources renewable energy destined to la production of energy electric", with the modifications set out in this law. 5 promotional benefits provided for in subparagraphs 2), 3) 4) 5) and 6) item 9 ° of the Law 26.190, modified by this law, apply in the terms provided there.
Chapter III Trust Fund for the development of renewable energy

Article 7 ° - create the public trust fund known as "Fund for the development of energy renewable" hereinafter, "FODER" or the "Fund" which will settle as a trust for Administration and finance, which shall remain in force throughout the territory of the Republic of Argentina with the scope and limitations established in this law and the regulations that in its consequence rendered the Executive power. 1 object. The Fund will aim at the application of the trust property to the granting of loans, the realization of contributions of capital and acquisition of any other financial instrument aimed at the implementation and financing of eligible projects in order to make possible the acquisition and installation of goods of capital or the manufacture of goods or infrastructure, within the framework of enterprises of electric power production from renewable sources under the terms of the Law 26.190 as amended hereby. 2. appoint the national State, through the Ministry of economy and public finances, as settlor and trustee of the Fund and the Bank for investment and foreign trade as trustee. Beneficiaries are natural persons domiciled in the Republic of Argentina and in the Argentina Republic legal persons who are holders of an investment project with the scope defined in article 8 of law 26.190 which has been approved by the enforcement authority. 3 constitute the Executive Committee of the "fondo", which will be made by the Secretary of energy, the Ministry of Federal Planning, public investment and services; the Secretary of economic policy and development planning, the Ministry of economy and finance; and the President of the Bank for investment and foreign trade, who may appoint an alternate member with rank not lower than Assistant Secretary or director, as the case may be. 4. resources of the Fund. The FODER will have a heritage that shall consist of the following trust property: to) resources coming from national Treasury assigned by the national State through the enforcement authority, which may not be annually less than fifty per cent (50%) of the savings in fossil fuels due to the incorporation of generation from renewable sources obtained in the previous year , according to as it set the rules. (b) specific charges to the energy demand to be established.
https://www.boletinoficial.gob.ar/pdf/linkQR/VWoxT3hYandOL1JycmZ0RFhoUThyQT09 c) the recovery of principal and interest of the financing granted. (d) the dividends or profits received by ownership of shares in eligible projects and revenues from its sale. (e) the proceeds from its operations, income, fruits and investment of the trust property. (f) the income obtained by the issuance of trust securities issued by the trust on behalf of the Fund. For such purposes, the Fund may request the endorsement of the national treasure in terms that establishes regulations. Instruct the Chief of the Cabinet of Ministers to give it the adjustments budget relevant, through the reallocation of items of the national budget, for the purposes of implementing the provisions of the present. 5 instruments. For the fulfilment of its object, the FODER will be able: to) provide funds and grant facilities through loans, acquisition of public or private securities to the extent that these were issued with the sole purpose of obtaining financing for projects achieved by the present. (b) make contributions of capital to companies that carry out the projects and to sign any instrument of financing to be determined by the enforcement authority, provided they allow to finance projects with the targets laid down in this law. (c) reward percentage points of the interest rate of loans and securities granting or values in which participating financial institutions or other actors in the role of funders. In this case, the credit risk will be assumed by such entities, which will be in charge of the evaluation of credit risk. However that, for the granting of the benefit must count with the approval of the previous eligibility of the project by the Executive Committee. (d) provide guarantees to support electric power purchase contracts to be signed by the management company of the S.A. electricity wholesale market (CAMMESA) or the institution which is designated by the enforcement authority on behalf of the national State. Instruments that use the FODER to inject funds in eligible projects may be nominated in pesos or dollars, corresponding in this case its integration and payment in pesos. The application authority of this law shall determine the terms and conditions of the instruments and how they will be managed and they awarded the lines of credit and guarantees or guarantees provided for in this section, which must be approved by the Executive Committee. Instruments must be granted priority to ventures irrefutably proving greater percentage of national component integration. For such purposes, the Fund issue rate of interest as laid down in subparagraph (c)) only to those projects that prove the percentage of national integration set out in the first subparagraph of paragraph 6) of article 9 of the Law 26.190, amended by article 4 of the present, as determined by the enforcement authority. 6. tax treatment. Both the FODER and the trustee, relating to the FODER operations, shall be exempted from all taxes, fees and existing national contributions and created in the future. This exemption includes laws 20.628 and 25.063, 25.413 23.349 taxes and other internal taxes that may be applicable. 7. enforcement authority. The authority of implementation of the Fund shall be designated by the Executive Branch, and is empowered to enact regulations, explanatory, amended and complementary standards that are relevant and apply the sanctions that apply. Authorized the enforcement authority to delegate functions in a dependence of not lower than Assistant Secretary rank. 8 enabled the Ministry of economy and finance to approve the trust agreement, within thirty (30) days from the publication of this law in the Official Gazette.
https://www.boletinoficial.gob.ar/pdf/linkQR/VWoxT3hYandOL1JycmZ0RFhoUThyQT09 9. Authorize who designated his replacement, to sign the contract of trust with the trustee or the holder of the Ministry of economy and public finances.
Chapter IV contribution of users of electricity to fulfilment of the objectives of the regime of promotion article 8 - set that all users of electric power of the Argentina Republic shall contribute to the fulfilment of the objectives set out in the Law 26.190, amended by this, and in chapter II of this law, in the manner provided in this chapter. For this purpose, each obligated subject must reach the minimum incorporation of eight percent (8%) of the total of the own consumption of electric power, energy from renewable sources, to December 31, 2017, and the twenty per cent (20%) to December 31, 2025. The fulfilment of these obligations should be gradually, in accordance with the following schedule: 1. December 31, 2017, should reach a minimum eight percent (8%) of total consumption of electrical energy. 2. at December 31, 2019, must achieve a minimum twelve percent (12%) of total consumption of electrical energy. 3. at December 31, 2021, must reach minimum sixteen percent (16%) of total consumption of electrical energy. 4. at December 31, 2023, must reach at least eighteen percent (18%) of total consumption of electrical energy. 5 to December 31, 2025, should reach at least twenty percent (20%) of total consumption of electrical energy. The minimum consumption set for the each period cut-off date may not be diminished in the following period.

Article 9 - large users of the wholesale electric market and the great demands that are customers of the providers of the service public distribution or agents distributors, with demands for power equal to or greater than three hundred kilowatts (300 kW) must comply with effective and individually with the objectives indicated in the preceding article. For this purpose, may self-generate or hire the purchase of energy from renewable sources of generation in order to comply with the prescribed in this article. It buys may make is to the own generator, through a distributor that it acquires in his name to a generator, of a marketer or buy it directly to CAMMESA low them provisions that, for this, set the authority of application. Signed contracts by the subjects indicated in the preceding paragraph may not fix one average price increased to thirteen hundred dollars or the equivalent in national currency, for each megawatt hour sold between the parties (U$ S 113/MWh). Completed two (2) years from the entry into force of the regulation of this law and until the end of the second stage of the "regime of building national for the use of sources renewable energy destined to la production of energy electric", the enforcement authority may modify the maximum price established above if warranted by market conditions applicable for new contracts concluded.
ARTICLE 10. -For the purposes of the provisions of the preceding article are not applicable to the great https://www.boletinoficial.gob.ar/pdf/linkQR/VWoxT3hYandOL1JycmZ0RFhoUThyQT09 users and demands great included therein or to generators which use renewable energy sources, no existing standard at the time of the entry into force of this law or issued in the future which in any way limit, restrict, prevent or prohibit, temporarily or permanently, the conclusion of supply contracts referred to in article 6 of the law 24.065.
ARTICLE 11. -For defaults on obligations of consumption of the portion of renewable electrical energy corresponding to the percentages indicated in article 8 °, the major users of the wholesale electricity market and major lawsuits that are customers of the providers of the service public distribution or agents distributors, as penalty for such failure shall pay their missing at a price equivalent to the Variable cost of production of electricity corresponding to the generation whose fuel supply diesel oil origin imported, calculated as the weighted average of the twelve (12) months of the year is prior to the date of default calendar. The amount to be applied as penalties will be determined by the enforcement authority. Regulations will establish the procedure to be followed for the determination of non-compliance and, where appropriate, the application of the penalty, respecting the right of Defense of the obligors.
ARTICLE 12. -For the purposes of the fulfilment of the objectives in article 8 ° by the entire demand of less than three hundred kilowatts (300 kW) power, the enforcement authority will have measures that are conducive for the incorporation to the wholesale electricity market (MEM), new offers of electrical energy from renewable sources that enable to achieve the percentages and deadlines laid down in that article. In addition, the enforcement authority will instruct cammesa or body that it deems appropriate to diversify the array of renewable energy in order to enable the development of different technologies and geographical diversification of enterprises and harnessing the potential of the country in the field. For the indicated purposes, it shall not apply to contracts for the sale of electric energy from renewable sources that celebrate CAMMESA or the body that considers relevant to the enforcement authority established in the second paragraph of article 9 ° or maximum price that, in the future, replace it by a decision of the enforcement authority. Electric power from renewable sources from existing supply contracts to the date of entry into force of this law, will be considered as part of the fulfilment of this objective.
Chapter V increases tax article 13. -The beneficiaries of the regime instituted by law 26.190, with the amendments made by this Act, whatever the date on which their projects start and develop, may move to the price agreed in the contracts of renewable energy supply, higher costs resulting from increases in taxes, fees, contributions or charges national, provincial, municipal or of the autonomous city of Buenos Aires produced subsequent to the conclusion of such contracts. In a contract concluded by the CAMMESA or the entity designated by the enforcement authority, generator shall be entitled to apply for recognition of a new price of the supplied energy https://www.boletinoficial.gob.ar/pdf/linkQR/VWoxT3hYandOL1JycmZ0RFhoUThyQT09 when increases occur in taxes, fees, contributions or charges national, provincial, municipal, or of the autonomous city of Buenos Aires. For this purpose, it must supply cammesa or to the body designated by the enforcement authority, prior to the last business day of each month, the information necessary to evaluate the adjustment of the value of the supplied energy.
Chapter VI import regime article 14. -The titular subjects of all investment projects that meet the requirements to be beneficiaries of the regime instituted by law 26.190, with the amendments made by this Act, regardless of the date on which to begin and develop, are exempt from the payment of import and rights of all other rights, excise, correlative assessment or rate statistics , to the exclusion of other remuneration rates of services, by the introduction of capital goods, special equipment or parts or components of property, new in all cases, and the inputs determined by the enforcement authority, which may be necessary for the implementation of the investment project. Exemptions or the consolidation of duties and taxes will be extended to spare parts and new accessories that are needed to ensure the setting up and development of the activity, which will be subject to the respective verification of destination, which must respond to the project that prompted such requirements. Exemptions or the consolidation of duties and taxes will be extended also to the import of capital goods, parts, components and supplies for the production of electricity from renewable generation equipment and intermediate goods in the value chain of manufacture of equipment for power generation from renewable source both when your destination is within the country as the export sale , whenever proving that domestic production of goods there is to be imported. The enforcement authority will determine how to comply with the required accreditation.
ARTICLE 15. -The assets of capital, parts, accessories and supplies to be introduced under the aegis of the liberation of duties and charges established in the preceding article, shall only be alienated, transferred or deallocation activity subject to the benefit, upon completion of the cycle of activity that gave rise to their import or life if it was a minor. In case of being re-exported or transferred to an activity not included in this regime, should be the payment of duties, taxes and charges corresponding to that moment.
ARTICLE 16. -The benefits established in this chapter shall remain in force until December 31, 2017.
Chapter VII access and use of renewable energy sources article 17. -Access to and the use of renewable energy sources included in article 4 of the Law 26.190, modified by the present law, shall not be encumbered or reached by any specific tribute, canon or royalties, whether national, provincial, municipal or the autonomous city of Buenos Aires, until December 31, 2025 https://www.boletinoficial.gob.ar/pdf/linkQR/VWoxT3hYandOL1JycmZ0RFhoUThyQT09. Provisions of the preceding paragraph does not preclude the levying of canon or equivalent consideration for the use of land in which the enterprises are installed.
Chapter VIII electrical energy from intermittent renewable resources article 18. -The electric energy from intermittent renewable resources have, for your electrical clearance, a treatment similar to the received by hydro-power plants in passing.
ARTICLE 19. -Won't demand the physical support of power of self-generation with renewable energy or renewable energy contracts celebrated subjects included in article 9 of this law. The enforcement authority will have the mechanisms to ensure the reserve of power associated with the renewable generation, whose cost will be supported throughout the system.
Chapter IX supplementary provisions article 20. -The enforcement authority shall disseminate broadly possible information pertaining to offers of generation of electricity from renewable energy sources.

ARTICLE 21. -Invited the provinces and the autonomous city of Buenos Aires to accede to this Act and in their respective jurisdictions, those that have not yet done so, to enact their own legislation to promote the production of electricity from renewable energy sources. In the Act of accession, provinces should expressly invite to the municipalities in their respective jurisdictions to adhere to the present and to enact the relevant legislation with the aim of promoting indicated in the previous paragraph.
ARTICLE 22. -Communicate to the national executive power.
GIVEN IN THE CHAMBER OF THE CONGRESO ARGENTINO, BUENOS AIRES, TO THE TWENTY-THREE DAYS OF THE MONTH OF SEPTEMBER IN THE YEAR TWO THOUSAND AND FIFTEEN.
-REGISTERED UNDER NO. 27191 - AMADO BOUDOU. -JULIAN A. DOMINGUEZ. -John H. Estrada. -Lucas Chedrese.

Date of publication: 21/10/2015 https://www.boletinoficial.gob.ar/pdf/linkQR/VWoxT3hYandOL1JycmZ0RFhoUThyQT09 0