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Colombia: Expanded list of energy projects eligible for tax benefits

Expanded list includes transportation-related services and various stages of hydrogen value chain.

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October 17, 2025

The Mining-Energy Planning Unit (UPME) issued Resolution 736 of 2025, expanding the scope of energy projects eligible for tax benefits under Law 1715 of 2014, as amended by Law 2099 of 2021, such as enhanced income tax deductions, accelerated depreciation, value added tax (VAT) exclusion, and exemption from customs duties.

The updated list of eligible projects includes:

  • New goods associated with trailers and semi-trailers for transport in biomass energy projects
  • Acquisition of auto parts and assembly/manufacturing services for electric vehicles
  • Running rails for electric rail transport
  • Refrigeration and indirect heating equipment and systems for the industrial and tertiary sectors
  • Centrifugal pumps and variable speed drives for process optimization in the hydrocarbon sector
  • Elements, equipment, and/or machinery for the production, conditioning, storage, distribution, re-electrification, and end-use of green and blue hydrogen

Read an October 2025 report (Spanish) prepared by the KPMG member firm in Colombia

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