According to the Philippine Business World report on August 11, the Philippine Investment Authority released the Implementation Rules of the 2011 Investment Priority Plan yesterday. This version is stricter than previous ones, setting economic standards for qualified projects, detailing tax-exempt income, and defining projects in the housing and energy sectors that meet priority conditions. New regulations introduced in the rules include that the approval of priority projects must consider existing and potential market demand, the extent to which it can create a market for domestic suppliers of raw materials and intermediate goods, the number of jobs created, net value added by the project, export potential, and multiplier effects; export products must increase in value by at least 25% based on raw materials or intermediate goods; income eligible for tax incentives must be directly generated by registered priority projects, not exceeding 10% of the total project value, and must be net income; regarding energy projects, the rules stipulate that only projects using local energy materials or adopting environmentally friendly, green technologies can enjoy tax incentives, with the production cost per megawatt increasing from $1 million last year to $1.5 million; the price cap for each unit in mass housing projects is set at 2.5 million pesos to qualify for tax incentives. Additionally, the rules add a sub-project of "hull dismantling and recycling" under the "shipbuilding" project and allow tax incentives for projects that build at least five electric vehicle charging stations and produce battery components for electric vehicles.
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