Egypt's parliament passes generous green hydrogen subsidy law
The Egyptian parliament yesterday (Tuesday) passed legislation enabling a green hydrogen subsidy scheme which offers a generous tax credit of up to 55%, as well as wider non-tax incentives, to project developers.
The bill, which was approved by the country’s cabinet in May and must now pass to Egypt's president for approval, offers companies 33-55% off the tax paid on a project, as well as VAT exemptions on equipment, tools, machines, raw materials and transport — apart from passenger cars — used for development.
Green hydrogen projects will also benefit from an exemption on real estate tax, stamp tax, customs tax on imports (again, aside from passenger cars), and documentation and registration fees due on contracts for establishing companies, credit facilities, mortgages, and land registration.
Exports of green hydrogen and its derivatives, such as ammonia or methanol, will also be exempt from VAT.
The bill also offers companies a number of non-tax incentives, including a single approval which would allow developers to import materials and equipment without needing to register them and export H2 or derivatives without a license or need for registration.