Uzbekistan will lift the restriction on the full use of land and property tax benefits for installed solar panels. President Shavkat Mirziyoyev gave this instruction to the Tax Committee at the government meeting on Monday.

From April 1, 2023, individuals and legal entities that have installed equipment for renewable energy sources with a capacity of up to 100 kW shall be relieved from paying property tax in the form of this equipment, tax on the land occupied by it and tax on profits received from the sale of produced power for 10 years.

The January 10 presidential decree amended the procedure for granting benefits.

In particular, persons who have installed and use renewable energy installations with a total capacity of up to 100 kW shall be relieved for a period of 3 years from the date of their commissioning from paying:

• property tax for legal entities — for these installations, land tax for legal entities — for land plots occupied by stand-alone installations, profit tax — for profits received from the sale of electricity for the general grid;
• property tax and land tax for individuals — for residential real estate (previously — only for the part occupied by equipment).

In the case of installing equipment with an electric energy storage system (batteries) with a capacity of at least 25% of the capacity of the installed solar panels, the tax benefits provided for in this subparagraph are applied for a period of 10 years from the date of their commissioning.

Tax benefits shall be applied to individuals if they install renewable energy equipment with a total capacity of more than 1 kW for each object once.

While, the annual amount of the tax benefit should not exceed the base calculation amount (680 thousand soums) for property tax for individuals, and the base calculation amount (340 thousand) for land tax for individuals.

However, these amendments have not yet been made to the Tax Code, which is why they cannot yet be applied in practice.

The president also instructed the leadership of the economic complex (headed by Deputy Prime Minister Dzhamshid Kuchkarov) to expand the opportunities for residents and businesses to purchase energy-saving equipment and solar panels.