EO 121: The Electric Vehicle Incentive Strategy (EVIS) Program
Legal question
What fiscal support does the EVIS Program offer, and which companies actually qualify?
Applicable laws and rules to discuss
- Executive Order No. 121, adopting the EVIS Program
- Republic Act No. 11697, the Electric Vehicle Industry Development Act (EVIDA)
- Republic Act No. 8424, the National Internal Revenue Code, Title XIII (no double availment)
- The Motor Vehicle Development Program
This is industrial policy, not a consumer rebate
EVIS does not discount an EV for a retail buyer. It pays manufacturers to build EVs, parts, and components in the Philippines, with the stated aim of making the country a regional automotive manufacturing hub. Coverage is limited to the manufacture of hybrid and battery electric passenger cars and commercial vehicles, plus their parts and components. Consumers benefit only indirectly, through local supply.
The two forms of support
Fixed Investment Support (FIS) reimburses a percentage of capital expenditure on tooling, equipment, research and development, and engineering changes (excluding land): 40% for battery EVs and 30% for hybrid, plug-in hybrid, and fuel cell EVs, with the same split for parts and components. Production Volume Incentive (PVI) pays up to 12% of the ex-factory unit price, capped at ₱200,000 per unit. Each runs for a maximum of ten years.
The eligibility thresholds are high
FIS requires new investment with a minimum investment capital of ₱5 billion, and the enrolled model must reach the domestic or export market within three years of registration. PVI requires a minimum planned production volume of 10,000 EV units. An applicant may enroll at most two models, must post a performance bond, and if the program is oversubscribed only the top four qualified applicants are recommended. Total program support is capped at ₱60 billion, with no more than ₱15 billion per enrolled model.
How the money arrives, and the strings attached
Support is not cash: it is issued as a non-transferable Tax Payment Certificate that a participant may use to defray income tax, excise tax, value-added tax, and import duties owed to the National Government. Participants cannot double-dip with incentives under Title XIII of the Tax Code or other government incentive programs for the same activity. The BOI periodically audits production and parts importation volumes to prevent parts trading, and non-compliance can mean suspension or forfeiture of support and cancellation of the Certificate of Registration.
Ask PHLaw.AI
Try: "Does my company meet the ₱5 billion investment threshold for Fixed Investment Support under the EVIS Program?"