Chilean Senate Introduces Incentives Project to Promote Electromobility

Legislation is a crucial part of the path towards the massification of electromobility. Experts, manufacturers and industry leaders say that regulations and incentives are key to the energy transition in the transportation sector.

In this regard, Chile’s national senators made a request for permanent tax incentives for electromobility users.

The congressmen stated the relevance and clear need to review the legislation related to this new form of energy applied to transportation.

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Project Details

In the text, the Executive is requested to instruct the authorities of the Ministry of Energy to promote plans, actions and programs for the promotion of electromobility, especially by establishing measures to encourage its use through permanent tax incentives.

In the petition, it is highlighted that after the approval of Law No. 21,305 on energy efficiency -recently enacted-, it is necessary to deepen the measures to promote electromobility.

The new regulation refers to the promotion of efficient transportation, the standardization of components that favor a safe development of electromobility, as well as its research and dissemination.

Another focus is to maximize the benefits of all those who opt for electric energy for mobility -which allows reducing the carbon footprint and noise pollution indexes-, for example, by establishing a permanent tax regime and not a transitory one in terms of exemptions as the one that currently exists in our legislation.

Key Legislative Power

The Chilean Congress has played a key role in electromobility. The Legislative branch gave the green light in October 2022 to the bill that boosts investment in energy storage and electromobility.

According to the authorities, the initiative will alleviate electricity transmission congestion and help close all coal-fired power plants by the early 2030s.

The regulation includes, among other aspects, exempting electric vehicles from annual road taxes for two years.

The exemption will cover 75% of circulation taxes in years three and four, 50% in years five and six; and 25% in years seven and eight.

It should be noted that Chile is one of the countries with the most advances in sustainable mobility, through the inclusion of electric buses and charging infrastructure.

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