The Industry and Trade Ministry has proposed significantly expanding the list of energy efficient equipment, the production of which can entitle a company to an investment tax loan.

The Ministry suggests updating the list by adding equipment and technologies meant for energy-efficient oil extraction, equipment for the reduction of oil consumption for technical needs, optimizing the operation of wells, advancing oil metering, facilities for oil refining, and for transporting oil and oil products.

The Ministry takes the position that investment tax loans in the gas sector should be available to companies investing in facilities for energy-efficient extraction and processing of natural gas and associated oil gas and also by gas-transporting facilities.

Facilities and technologies employed by power stations operating on gas and coal could also be added to the list.

The Ministry suggests applying the privilege to companies investing in energy-efficient equipment in the extraction of coal and iron ore, the production of coke, iron ore pellets, pig iron, steel, ferry alloys, aluminum, ammonia, all types of fertilizer, and synthetic rubber.

The list includes equipment for the production of motor vehicles, railway rolling stock, machinery, as well as paper and pulp industry equipment.

Pursuant to Article 67 of the Tax Code, companies investing in the establishment of facilitates with the highest class of energy effectiveness can claim an investment tax loan. The list of such facilities was approved in October 2010 and included only the production of LED lamps, condensation boilers, heat pumps, and cogeneration installations.

An investment tax loan is a form of changing the term of fulfilling a tax obligation, where the tax payer is allowed to reduce interest payments of the corporate profit tax with the subsequent payment of the principal debt and interest. It is extended for a term of one to five years.