חוק לעידוד השקעה באנרגיות מתחדשות (הטבות מס בשל הפקת חשמל מאנרגיה מתחדשת), התשע"ז-2016Law for Encouragement of Investment in Renewable Energy (Tax Benefits for Electricity Production from Renewable Energy), 2016 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Law for the Encouragement of Investment in Renewable Energy (Tax Benefits for Electricity Production from Renewable Energy), 2016 (hereinafter - the Law), was passed in second and third reading on 12 December 2016. The purpose of the Law is to encourage investment in two types of facilities for producing electricity through energy - a wind turbine that generates electricity using wind, and a photovoltaic facility that generates electricity using solar rays. The Law establishes tax benefits for small electricity producers who sell the electricity to the Electric Corporation. A household consumer who meets the conditions set out in the Law will be entitled to an exemption from tax on income from the sale of electricity whose total amount in the tax year does not exceed 24,000 NIS, or to pay tax at a rate of 10% on income from the sale of electricity up to an amount of 99,000 NIS (updated for 2016), at the consumer's choice. In addition, the Law established tax benefits for individuals owning real estate (including structures built on the real estate) who lease it for the purpose of installing electricity production facilities and selling the electricity, such that they will be exempt from tax on income from leasing the real estate whose total amount in the tax year does not exceed 5,000 NIS, or will be liable to pay tax at a rate of 10% on income from leasing the real estate, at the taxpayer's choice. In addition, the Law established benefits regarding exemption from payment of National Insurance and health insurance contributions on income from the sale of electricity, as well as additional relief in VAT and income tax regarding exemption from registration, filing reports, and maintaining ledger accounts. The benefits stated in the Law will be granted for a period not exceeding 25 years.

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Sponsors

Hamad Amar, Yael Cohen Paran, Robert Ilatov, Yulia Malinovsky, Dov Khenin, Amir Ohana, Tali Ploskov, Nissan Slomiansky, Yoav Ben Tzur, Manuel Trajtenberg, Yehiel Hilik Bar, Eytan Broshi, Yehuda Joshua Glick, Avraham Neguise, Aida Touma Sliman, Abd Al Hakeem Haj Yahya, Orly Levi-Abekasis, Uri Maklev, Osama Saadi, Micky Rosenthal, Eyal Ben Reuven, Yousef Jabareen, Yoseph Yonah, Ksenia Svetlova, Ayelet Nahmias-Verbin, Haim Jelin, Nachman Shai, Michal Biran, Mickey Levy, Aliza Lavie, Michal Rozin, Zouheir Bahloul, Yoel Hasson, Revital Swid, Omer Barlev, Itzik Shmuli, Merav Michaeli, Isaac Herzog, Yaakov Perry, Ofer Shelah, Ilan Gilon, Karine Elharrar, Esawi Frej, Tamar Zandberg, Abdullah Abu Maaruf, Eitan Cabel, Yael German