The Jamaican Government is implementing measures to facilitate increased investments in Jamaica’s renewable energy sector.
Jamaica’s Finance and the Public Service Minister, Dr Nigel Clarke, said the Income Tax Act will be amended to exclude Independent Power Providers (IPPs) producing energy from renewable sources from the definition of “regulated company” for the purpose of section 30 of the Act.
Minister Clarke said that these amendments will reduce the Corporate Income Tax rate for IPPs to 25 percent.
This reduction, the minister said, will be limited to IPPs, who produce 75 percent or more of renewable energy from wind and solar and who are regulated by the Office of Utilities Regulation (OUR). They will, however, not benefit from the Employment Tax Credit, he explained.
He said the energy sector is highly dependent on imported fossil fuels, primarily oil.
