Tax regulation mechanism (Development Law)

• Law No. 4399/2016

Law No.4399/2016, known as Development Law, foresees support for CHP plants and RES plants for H&C (only for autonomous production) (art.9 par.8 Law No. 4399/2016). The support is offered as an income tax relief and/or stabilization of income tax coefficient. In addition, the support can be replaced by other kind of support such as subsidies.

RES for self-consumption can make up to 15% of eligible regional support. Regional support maximum is stipulated in EU Commission’s Regional Aid maps. For CHP plants, the level of support varies between 45%-65% of the eligible expenditure and is contingent upon the enterprise size (large, medium or large) (art. 11 par.3 subpar. 2h Law No. 4399/2016). Additional increase between 5%-15% is foreseen, if the investment takes place in certain regions, defined by the Regional Aid maps defined by the EU Commission. It should be noted that the support rates concern the Programmatic Period 2014-2020.

All enterprises based in Greece are eligible for support. More specifically, the following categories are included: private enterprises, commercial companies, cooperatives and social cooperatives (art. 6 Law No. 4399/2016).

A call for application is issued yearly by the Ministry of Development and Investments. Interested plant operators submit their application. After a two-stage assessment (art. 14A &14B law No.4399/2016), a ranking is made and those investment plans that have received the highest scores receive the support. More specifically, tax relief is validated after 50% of the investment plan is completed. Tax relief is offered for a period of fifteen (15) years. (art. 66 Law No.4399/2016).

• MinDev