The Province of Buenos Aires moves forward onto the development of biofuels

On May 6, 2010, Resolution No. 152/2010 of the Ministry of Production of the province of Buenos Aires (the “Resolution”) was published in the provincial Official Gazette. This Resolution creates the Provincial Registry of Biofuels Producers (the “Registry”) within the framework of the Provincial Law No. 13,719 (the “Provincial Law for the Promotion of Biofuels”). Through the Provincial Law for the Promotion of Biofuels, the Province adhered to the Promotion Regime for the Production and Sustainable Utilization of Biofuels established by federal Law No. 26,093 (please see “New Regime for the Promotion of Production and Use of Biofuels in Argentina” in Marval News # 50, May 31, 2006).

The benefits granted under the Provincial Law for the Promotion of Biofuels for the owners of biofuels producing facilities in the Province of Buenos Aires are as follows:
(i)    Gross Income Tax and Real Estate Tax exemption for a 10 to 15 year term, depending on the final use of the biofuels;
(ii)    tax stability for the same term (prohibition of increasing the overall provincial tax burden);
(iii)    the creation of a Fund for the Promotion and Development of Biofuels (“FONBIO”) aimed at promoting the research, development and technical assistance, and finance projects of biofuels production in the Province of Buenos Aires.

Any producer applying for the benefits provided by the Provincial Law for the Promotion of Biofuels must be registered with the Registry. This Registry shall be kept by the Provincial Office for the Promotion of Competitivity, Innovation and Services of the Under-Secretariat of Industry, Commerce and Mining of the Provincial Ministry of Production (the “Office”).

The proceedings, requirements and forms that must be filled in order to obtain registration under the Registry are set forth by the Resolution.

The filing process begins through an electronic application followed by the submission of documents before the Office. The Office will then have a 10 working day term to resolve the registration.

The information to be submitted for these purposes includes the following:

(i)    Application indicating the grounds of the request and indicating the pretended benefit;
(ii)    Description of the applicant’s background and incorporation documents;
(iii)    Tax Identification Unique Code (CUIT);
(iv)    Balance sheets and financial statements for the previous two fiscal years;
(v)    Affidavit stating that the applicant does not owe any taxes or social security charges;
(vi)    Certified copy of the Municipal permit for the plant;
(vii)    Certified copy of the applicant’s registration with the Registry of Oil Companies -Manufacturers and Suppliers’ chapter (“Biofuels and biofuels blends with Gasoil and/or Fuel Manufacturers”) kept by the Under-secretariat of Fuels of the Ministry of Federal Planning, Public Investment and Services (Resolution S.E. No. 419/98).

With this new regulation, the Province of Buenos Aires moves forward onto the development of biofuels in the same direction followed by the federal guidelines provided by Law No. 26,093.