Ecological Solid Waste Management Act of 2000

Section 45

(a) Rewards and recognitions, monetary or otherwise, shall be provided to individuals, private organizations and entities, obliged enterprises, and PROs, including nongovernment organizations, that have undertaken outstanding and innovative projects, technologies, processes and techniques or activities in reuse, recycling, and reduction. Said rewards shall be sourced from the Fund herein created. (b) An incentive scheme is hereby provided for the purpose of encouraging LGUs, enterprises, or private entities, including obliged enterprises, PROs, and NGOs, to develop or undertake an effective solid waste management, including recovery and diversion of plastic product footprint, or actively participate in any program geared towards the promotion thereof as provided for in this Act, as amended. (1) Fiscal Incentives — (a) Tax incentives — Any provision of law to the contrary notwithstanding, obliged enterprises or PROs acting on their behalf, and other registered business enterprises may apply for incentives following the approval process provided under Title XIII (Tax Incentives) of the National Internal Revenue Code of 1997, as amended, for eligible activities: Provided, That such activities shall undergo the standard processes in the identification of qualified activities under the Strategic Investment Priority Plan (SIPP). (b) The EPR expenses of obliged enterprises, PROs, and private enterprises shall be considered as necessary expenses deductible from gross income subject to the substantiation requirements for necessary business expenses deductible from gross annual income in accordance with Section 34(A)(1) of the National Internal Revenue Code of 1997, as amended. (as amended by RA No 11898) (c) Tax and Duty Exemption of Donations, Legacies and Gift — All legacies, gifts and donations to LGUs, enterprises or private entities, including NGOs, for the support and maintenance of the program for effective solid waste management shall be exempt from all internal revenue taxes and customs duties, and shall be deductible in full from the gross income of the donor for income tax purposes. (2) Non-Fiscal Incentives — LGUs, enterprises or private entities availing of tax incentives under this Act shall also be entitled to applicable non-fiscal incentives provided for under E.O. 226, otherwise known as the Omnibus Investments Code. The Commission shall provide incentives to businesses and industries that are engaged in the recycling of wastes and which are registered with the Commission and have been issued ECCs in accordance with the guidelines established by the Commission. Such incentives shall include simplified procedures for the importation of equipment, spare parts, new materials, and supplies, and for the export of processed products. (3) Financial Assistance Program — Government financial institutions such as the Development Bank of the Philippines (DBP), Landbank of the Philippines (LBP), Government Service Insurance System (GSIS), and such other government institutions providing financial services shall, in accordance with and to the extent allowed by the enabling provisions of their respective charters or applicable laws, accord high priority to extend financial services to individuals, enterprises, or private entities engaged in solid waste management. (4) Extension of Grants to LGUs — Provinces, cities and municipalities whose solid waste management plans have been duly approved by the Commission or who have been commended by the Commission for adopting innovative solid waste management programs may be entitled to receive grants for the purpose of developing their technical capacities toward actively participating in the program for effective and sustainable solid waste management. (5) Incentives to Host LGUs — Local government units who host common waste management facilities shall be entitled to incentives.