Tax break on green energy

(CNS): An import duty waiver for renewable/alternative energy equipment has been approved reducing costs for residents wanting to invest in alternative energy sources, such as solar panels.  Brought to Cabinet by Minister of Communications, Works and Infrastructure Arden McLean, the waiver is part of efforts by his ministry and the Electricity Regulatory Authority (ERA) to reduce the islands’ dependence on fossil fuels.

“There are many renewable energy sources that are economically viable for the Cayman Islands,” McLean explained, “The ministry would like to prevent any further delay caused by import duties in the adoption of renewable technologies.”

Effective since 1 December 2008, the waiver allows a full exemption from import duty on renewable energy equipment for residential homeowners. Waivers on similar equipment imported for commercial use will be reviewed on a case-by-case basis by the ERA.

To access the waiver on renewable energy equipment, buyers need to present a copy of the equipment invoice to the Customs Department and sign a declaration form which states the purpose of the equipment. Also, electrical contractors who import renewable energy equipment may seek refunds on duty after the equipment is sold and installed at residential applications.