BEIJING, May 16 (Xinhuanet) -- The State Economic and Trade
Commission (SETC) announced recently that it will join the State
Administration of Taxation in offering incentives for the
development of environmental protection equipment.
   The equipment eligible for incentives needs to be used in one
or some of eight areas, namely, waste water treatment, air
pollution and solid discharges treatment, noise control,
environment protection inspection, energy-saving and utilization
of recyclable energy, comprehensive use of resources and pollutant
free production.
   Also included are products such as environmental protection
material and medications.
   Businesses which buy the equipment listed in the category for
technological upgrading will be able to deduct the same amount
from their income tax as an investment. Businesses or their
branches producing the equipment will be temporarily exempted from
income tax if their annual net income is below 300,000 yuan.
   In addition, when setting up projects for technological
innovation and remodelling, the SETC will give particular
attention to developing, researching, producing and testing the
equipment, and will offer support to key projects by means of
discounts or subsidies.
   The listed products will also be given priority  in
construction projects and government procurement funded from
treasury capital.   Enditem