Argentina registered the first project under the new Large Investment Incentive Regime (RIGI) implemented by the Government of Javier Milei, which grants tax and exchange benefits, as reported this Friday by official sources.
This is an investment of 220 million dollars from YPF Luz, the renewable energy division of the oil company with state majority YPFto install a solar park in the province of Mendoza (west), with an installed capacity of 305 MW, which is equivalent to the energy used by more than 233,000 homes, according to a company statement.
The ´El Quemado´ park, which will be located in the Mendoza department of Las Heras, was developed together with the Mendocina Energy Company (EMESA)and will avoid the emission of more than 385,000 tons of carbon dioxide per year, YPF reported.
The project, which will employ more than 400 peoplewill begin its first stage of construction, to reach 200 MW, in the first quarter of 2026, with a construction period of 18 months.
The Milei Government managed to get Parliament to endorse its initiative to create the RIGI, which seeks to attract long-term projects that exceed a minimum threshold of 200 million dollars investmentgenerate jobs and promote productive activity in Argentina.
The regime grants tax, customs and exchange benefits to projects in which the income, during the first three years of its development, do not exceed 30% of the total investment.
The governor of Mendoza, Alfredo Cornejo, clarified in his X account that under the RIGI regime companies will be exempt from the payment of stamp tax and gross receipts tax in your provinceas a direct incentive to investment and development.
The RIGI reaches key sectorssuch as the forestry industry, tourism, infrastructure, mining, technology, steel, energy, oil and gas. These sectors will have a two year period to join as of the entry into force of the regime.
The Milei Government considers that this regime will be crucial for the development of the countrywhose economy fell 1.6% in 2023 and is expected to decline 3.5% this year in a context of severe fiscal adjustment, high fiscal pressure and strong capital controls.
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