On February 15 the Energy Stability Law was reformed, including a series of regulations that seek to promote the use of sustainable technologies that contribute to the reduction of greenhouse gases and combat Climate Change.

The most relevant aspects of the legal reform are:

  1. Electric vehicles are exempt from compliance with the gas, smoke, and noise emission control standards established in the Law for the vehicle circulation regime.
  2. The creation of charging or recharging centers for electric vehicles is ordered, requiring the Ministry of Energy and Mines to publish regulatory provisions for these centers.
  3. The payment of the DAI, ISC, and VAT to the charging centers (recharging) of electric vehicles is exonerated for 5 years.
  4. The Mayor’s Offices and all their dependencies may exonerate 100% of taxes on the acquisition of electric vehicles and their spare parts, with no value limit.
  5. New tax incentives for electric vehicles are approved, in the ranges indicated below:

New fiscal stimuli incorporated in the Law for the importation of electric vehicles

from $1.00 to $30,000.00 100% 100% 100%
from $30,000.01 to $45,000.00 100% 75% 50%
from $45,000.01 to $60,000.00 50% 50% 0%
More than$60,000.01 0% 0% 0%

The approval of this Law is an important effort of the country in terms of climate change and brings with it the implementation of an electric mobility program – the creation of an entire infrastructure for optimal operation – that will be financed by the People’s Republic of China.