Countries › Dominican Republic › Guide › 3. Investing › Renewable energy incentives in the Dominican Republic: what Ley 57-07 still gives after the 2012 cuts

Renewable energy incentives in the Dominican Republic: what Ley 57-07 still gives after the 2012 cuts

Last verified: 2026-10-30 · Status: Stable

Ley 57-07 gives 100% relief from import duty and ITBIS on qualifying equipment, a 5% rate on interest paid abroad, and a tax credit for self producers. Ley 253-12 removed its income tax holidays and cut the self producer credit from up to 75% to 40%. Solar photovoltaic and geothermal have no size limit; wind, small hydro and concentrated solar do, and the Comisión Nacional de Energía approves each project.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Relief on qualifying equipment	100 %Ley 57-07 art. 9, as of 2026-10-30 · in force
Tax on foreign financing interest	5 %Ley 57-07 art. 11, as of 2026-10-30 · in force
Self producer credit cap	40 % of equipment costLey 253-12 art. 32, as of 2026-10-30 · in force
Income tax holiday	Repealed in 2012 Ley 253-12 art. 32, as of 2026-10-30 · repealed
Wind size limit	50 MWLey 57-07 art. 5 a, as of 2026-10-30 · in force
Biomass size limit	150 MWLey 115-15 art. 1, as of 2026-10-30 · in force

The rule

1. Projects of public, private, mixed, corporate or cooperative ownership may qualify after showing physical, technical, environmental and financial viability. Limits: wind up to 50 MW, hydro up to 5 MW, concentrated solar up to 120 MW per plant. Solar photovoltaic, ocean energy and biofuel plants have no size limit.Ley 57-07, art. 5, 2007-05-07 official text · verified 2026-10-30

2. Biomass up to 150 MW and waste to energy up to 150 MW qualify, each using at least 50% of that source as primary energy, and may be hybridized. Geothermal of any size qualifies.Ley 57-07 art. 5 as amended by Ley 115-15, Ley 115-15 art. 1, 2015-06-08 official text · verified 2026-10-30 · changed: Ley 115-15 raised the biomass limit from 80 MW to 150 MW and added waste to energy and geothermal.

3. The limits may be expanded up to double once at least 50% of the original size is installed and the permit timetable has been met.Ley 57-07, art. 5 paragraph I, 2007-05-07 official text · verified 2026-10-30

4. The Comisión Nacional de Energía authorizes or rejects applications for the incentives after technical and economic evaluation, and issues the certificates.Ley 57-07, art. 8, 2007-05-07 official text · verified 2026-10-30

5. Equipment, machinery and accessories for renewable production, plus transformation, transmission and grid interconnection equipment, have 100% relief from import taxes, and from ITBIS and taxes on final sale.Ley 57-07, art. 9, 2007-05-07 official text · verified 2026-10-30

6. Tax on interest paid on foreign financing falls to 5% for covered projects. The general rate is 10%.
Example: On RD$10,000,000 of interest, withholding falls from RD$1,000,000 to RD$500,000. / On US$164,201.73 of interest, from US$16,420.17 to US$8,210.09.Ley 57-07 art. 11; Código Tributario art. 306 as replaced by Ley 253-12, art. 11; Ley 253-12 art. 6, 2012-11-09 official text · verified 2026-10-30

7. Self producers get a one time income tax credit of up to 40% of the investment in equipment, used over three years at 33.33% a year, with a certificate from the commission. The cap was up to 75% before 2012.
Example: Panels costing RD$6,090,070 give at most RD$2,436,028 of credit, or RD$812,009.33 a year for three years. / Cost US$100,000.00, credit US$40,000.00, yearly US$13,333.33.Ley 57-07 art. 12 as reduced by Ley 253-12, Ley 253-12 art. 32, 2012-11-09 official text · verified 2026-10-30 · changed: Ley 253-12 of 9 November 2012 repealed the income tax exemptions in arts. 10 and 23 and cut the art. 12 credit to 40%.

8. Community projects up to 500 kW may get financing for up to 75% of total cost at the lowest market rates.Ley 57-07, art. 13, 2007-05-07 official text · verified 2026-10-30

9. Emission reduction certificates and bonds belong to the project owners.Ley 57-07, art. 14, 2007-05-07 official text · verified 2026-10-30

10. Power in the special regime needs a provisional concession. The applicant files first with the commission for preliminary approval and then with the Superintendencia de Electricidad.Ley 57-07, art. 16, 2007-05-07 official text · verified 2026-10-30

11. Registered plants need not bid into the wholesale market, and can sell to distributors at the marginal cost, with a premium or compensation as the regulations set.Ley 57-07, art. 18, 2007-05-07 official text · verified 2026-10-30

12. Distributors must buy surplus power from regulated and unregulated users with renewable systems, at prices set by the Superintendencia.Ley 57-07, art. 20, 2007-05-07 official text · verified 2026-10-30

13. Diverting exempt equipment means a fine of three times the amount exonerated and forfeiture of the goods. A repeat brings revocation and may bring a ten year ban on business with the public sector. For companies, sanctions fall on the administrator and main shareholders.Ley 57-07, art. 30, 2007-05-07 official text · verified 2026-10-30

Source	Limit	Source of the limit
Wind	50 MW	Ley 57-07 art. 5 a
Hydro	5 MW	Ley 57-07 art. 5 b
Solar photovoltaic	None	Ley 57-07 art. 5 c
Concentrated solar	120 MW per plant	Ley 57-07 art. 5 d
Biomass	150 MW	Ley 115-15 art. 1
Waste to energy	150 MW	Ley 115-15 art. 1
Geothermal	None	Ley 115-15 art. 1

Size limits by source

Worked example

A 40 MW solar park financed abroad pays RD$60,900,700 (US$1,000,000.00) of interest in a year. At 5% the withholding is RD$3,045,035 (US$50,000.00), against RD$6,090,070 (US$100,000.00) at the general 10%. Its panels enter free of import duty and ITBIS with a commission approval. It still pays income tax at 27%, because the holiday in art. 10 is gone.

Step by step

Size the project against art. 5.
Apply to the commission for preliminary approval with the technical and economic studies.
Take the file to the Superintendencia for the concession.
Get the environmental permit; see investing/project-permits-and-one-stop-shop.
Get the equipment list approved before shipping.
Register in the special regime before relying on art. 18.

Common traps

Art. 10 and art. 23 still print in the law. They were removed by Ley 253-12 art. 32, and art. 10 was also limited to 2020.
Art. 12 still prints 75%. The rate in force is 40%, and the limit for each technology comes from regulation.
The law applies the art. 9 relief to equipment on its list; items outside need a separate check.
Interest at 5% depends on the project being under the law; loans to a sponsor outside the project are not covered.
Fines reach the administrator and main shareholders personally under art. 30.

Sources

← The border zone regime in the Dominican Republic: 100% income tax relief in seven provinces under Ley 12-21Industrial incentives in the Dominican Republic: PROINDUSTRIA qualification under Ley 392-07 →

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