Renewable Energy Tax Incentives in the Dominican Republic: What Survives of Law 57-07 

The most generous promise of the Dominican Republic’s renewable energy law no longer exists, and knowing which incentives survived is what separates a well-structured solar project from an expensive misunderstanding.

Law 57-07 of 2007 remains the framework for renewable energy incentives, administered by the National Energy Commission (CNE), which evaluates and approves every application. But the 2012 fiscal reform, Law 253-12, repealed its headline benefits: the 10-year income tax exemption for renewable generators and the parallel exemption for biofuel producers (Articles 10 and 23) were eliminated. Any project plan still counting on an income tax holiday under Law 57-07 is working from a repealed text.

What survives is still substantial. The exemption that moves most projects is intact: 100% relief from import duties on the equipment, machinery and accessories needed to produce energy from renewable sources, including transmission, transformation and interconnection equipment for the national grid, plus 100% exemption from ITBIS on that equipment, whether imported or purchased locally. For self-producers, the company that puts panels on its warehouse roof, the homeowner who converts, the tax credit survives in reduced form: originally 75% of the equipment investment, it now stands at 40%, deducted against income tax in equal parts over three years, subject to CNE certification. Interest on foreign financing for qualified projects carries a reduced 5% withholding. And Law 115-15 broadened the menu of eligible sources, notably adding energy from municipal solid waste.

The nuance that trips up investors: none of this is automatic. The CNE must evaluate and approve the incentive before the equipment moves, the import exemption is processed through the foreign trade single window with the CNE’s authorization in hand, and reconstructing a claim after goods have cleared customs at full freight rarely works. The June 2026 fiscal reform adds one more structuring constraint: a taxpayer cannot stack Law 57-07 benefits with another incentive regime on the same investment.

If you are planning a solar, wind or waste-to-energy project in the Dominican Republic, our energy and tax lawyers can sequence the CNE approvals, the exemptions and the corporate structure so every surviving incentive is actually captured.

Do you need assistance for obtaining renewable energy tax exemptions in Dominican Republic? Contact Us.

Disclaimer: This publication is not intended to provide advice or suggest a guaranteed outcome as individual situations will differ and the situation may have changed since publication. For specific advice on the information provided and related topics, please contact the author.

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