Tax Incentive for Environmental Protection and Energy or Water Conservation Proj

Income derived by an enterprise from engaging in qualified environmental protection and energy or water conservation projects including public sewerage treatment, public refuse treatment, synergistic development and utilization of methane, technological innovation in energy conservation and emission reduction, sea water desalination and similar projects, shall be eligible for a tax exemption for the first year to the third year, and a 50% reduction in CIT for the fourth year to the sixth year, starting from the year in which the project first generates operating income.

   For projects that are eligible for tax reductions/exemptions under this Article, where the projects are transferred during the period of such tax reductions/exemptions, the transferees of such projects shall become eligible, on the date of the transfer, for the preferential treatment during the remaining period of such tax reductions/ exemptions. Where the projects are transferred after the period for the tax reductions/exemptions has expired, the transferee of such projects shall not enjoy the above tax reductions/exemptions with respect to the same projects.