On August 18, 2025, the Executive Branch submitted to the Chamber of Deputies a bill that seeks to promote the production of green hydrogen (H2V) and its derivatives in Chile, through a special regime of tax benefits.

Among the most relevant measures are the following:

1. Exemption from First Category Tax (IDPC) in Magallanes
   H2V production companies that are installed in the Magallanes and Chilean Antarctica Region will be exempt from IDPC, although they must comply with accounting and regional tax obligations.
2. Tax credit for purchasers of H2V
   A transitory credit against IDPC is proposed for taxpayers who purchase H2V produced in Chile or its derivatives, awarded through annual bidding processes. This mechanism will have a total budget of USD 2.8 billion between 2025 and 2030.
3. Validity
   The regime will enter into force with the publication of the law, except for the tax credit, which will apply as from the second month following such publication.

This project reinforces Chile's strategy to position itself as a regional leader in the energy transition, encouraging investment in green hydrogen with clear, long-term incentives.

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