Israel Tax Agency Explain Incentives for Residential Renewable Electricity Production

The Israeli Tax Authority Aug. 25 issued a circular on the preferential tax regime for individuals who invest in or own residential and renewable micro-generation facilities. The incentives include: 1) a reduced 10 percent tax rate for income from sale of electricity and rents from land where facilities are built; 2) a tax exemption for income from sale of electricity and rents from land where facilities were built if the income doesn’t exceed 100,187 Israeli shekels (US$28,508); and 3) VAT exemption on electricity sales. [Israel, Israel Tax Authority, 08/25/19]

Reference: View Circular No. 7/2019.