Section 4. Application.

All medium and large scale business enterprises used

for commercial and industrial use are hereby mandated to apply and implement the
policies provided under this Ordinance, including the Solar Power Tax Credit
provided for under Sec. 8 hereof.
A system of inspection, evaluation and certification shall be devised and
implemented by the Community Environment and Natural Resources Office (CENRO)
for this purpose.
Section 5. Certification. The medium and large scale business enterprise shall
apply for certification which must be in writing on a form prepared by the CENRO
and shall contain the following:
(1) Statement that their business enterprise has been using solar power to
operate in the functions of their business.
(2) An ownership certificate from the manufacturer/producer of the solar panels
installed.
(3) Any other information determined by the CENRO, including the inspection of
the facilities of the establishment.
Section 6. Revocation of Certificate. The city may order the revocation of the
certificate upon the recommendation of the CENRO if the city finds that:
6.1 The certification was obtained by fraud or misrepresentation; or
6.2 The holder of the certificate has substantially failed to install the solar
panels in compliance with the procedures in such certificate. As soon as the
order of revocation under this Section becomes final, the CENRO shall notify
the City Treasurer and the City Assessor of such order.
If the certificate is ordered revoked pursuant to item Number 6.1 of this section, all
prior tax credits provided to the holder of the certificate by virtue of such certificate
shall be forfeited, and upon notification under this Section, the City Treasurer shall
immediately proceed to collect those taxes not paid by the certificate holder as a
result of the tax credits provided to the holder under this Ordinance.

If the certificate is ordered revoked pursuant to item number 6.2 of this Section, the
certificate holder shall be denied any tax credit under this Ordinance in connection
with such facility after the date that the order of revocation becomes final.
Thereafter, all taxes shall become due and demandable in favor of the government.
Section7. Requirements. The criteria for evaluation and rating shall cover the
following: use of the solar panels, installation and use of the solar panels and
energy reduction and efficiency mechanisms.
The process of certification shall begin from the initial preparation and planning
phase and throughout the lifespan of the solar panel structures.
Section 8. Solar Power Tax Credit. The Solar Power Tax Credit is hereby made
available to a taxpayer for incorporating solar energy to curtail their electric energy
consumption provided that the enterprise subject for application is within the
territorial jurisdiction of Davao City and the applicant is the actual and lawful owner
or contract purchaser of the facility at the time of the installation or acquisition of
the solar panel structures.
Section 9. Credit Components. A Tax credit incentive is hereby established to
encourage the maintenance of the solar panels under the following schemes:
9.1 Solar Power Tax Credit. A taxpayer is eligible for a Solar Power Tax Credit
against a tax due: Provided, that the solar panels constitute a substantial part
of their power plan to decrease their electric energy consumption. The
amount of credit shall be determined pursuant to Section 8.
The credit shall be available to the taxpayer for the installation and
maintenance of the solar panel structures which shall be in no case be more
than 20% of the business tax due for the same taxable year.
9.2 The credit may be availed of only once within the Five (5) years duration
within which to avail of the credit provided for in this Ordinance. Provided,
finally, that once the Solar Power Tax Credit has been availed of, it shall
remain in full force and effect for the entire usage of the solar panel
structures, unless sooner recommended for revocation by the CENRO.

Section 10. Tax Discount. A system of tax discount shall be devised for
compliance based on the following criteria:
10.1 use of renewable energy;
10.2 use of energy efficient technology;
10.3 use of environment friendly materials.
Section 11. Evaluation Committee. An Evaluation Committee is hereby created
to devise a system and guidelines for the grant of tax discount for having complied
with the criteria set under Section 9 hereof. The Committee shall be tasked to
evaluate and recommend tax discount for consideration of the Sangguniang
Panlungsod. The Evaluation Committees shall be composed of the following:
11.1 City Treasurer
11.2 Head of CENRO
11.3 Three(3) Non Government Organizations in the field of environment.
Section 12. Repealing Clause. All ordinances contrary to or inconsistent with
this Ordinance are hereby repealed or modified accordingly.
Section 13. Separability Clause. If any part or provision of this Ordinance is
declared unconstitutional or invalid, the same shall not affect the validity and
effectivity of the other parts or provisions hereof.
Section 14. Effectivity Clause. This Ordinance shall take effect fifteen (15)
days after its publication in a newspaper of local or general circulation or posting in
at least two (2) conspicuous places in the city.

ENACTED BY THE SANGGUNIANG PANLUNGSOD OFDAVAO CITY IN ITS

SESSION ON [DATE OF SESSION]