The parliament’s Planning and Budget Committee has approved an omnibus bill introducing significant tax incentives to boost nuclear energy investments.
The new measures include corporate tax, value-added tax (VAT), and stamp duty exemptions for nuclear power plant projects. Under the newly approved articles, companies building nuclear plants will benefit from tax breaks until December 31, 2045. The government also holds the authority to extend the support for an additional five years.
The legislation allows developers to claim refunds on VAT incurred during construction work if it cannot be recovered through standard deductions. Furthermore, all deliveries of machinery and equipment for the nuclear plants will be exempt from VAT. For corporate tax calculations, the limit used to determine disguised capital through financing will be applied at 25% instead of 50%.
Deputy Energy Minister Zafer Demircan briefed the committee on the strategic goals behind the tax package. Demircan said that the regulations are designed to support Turkey's long-term energy transition. 'These measures are introduced within the scope of Turkey’s target to reach 20,000 megawatts of nuclear power capacity by 2050,' he said.
When committee members asked whether the new incentives would apply to the ongoing Akkuyu Nuclear Power Plant project, Demircan said newly introduced incentives are not related to existing projects. 'They are aimed at nuclear investments to be made in Turkey until 2045. This was not made for Akkuyu,' he added.
In addition to the energy incentives, the approved omnibus bill raises the country's minimum pension to 23,552 liras (approximately $500) and introduces new employment support programs for the tourism and manufacturing sectors.
The Akkuyu Nuclear Power Plant, in the Gülnar district of Mersin, is Turkey's first nuclear power plant. It is being built under a 2010 intergovernmental agreement between Turkey and Russia.
Alexei Likhachev, CEO of Rosatom, the Russian state nuclear energy company building the Akkuyu plant, confirmed that the plant's first unit was planned to come online this autumn. 'Of course, Akkuyu will come online this year; this is our key task,' Likhachev said, adding: 'There is no doubt that the startup will take place before the end of this year.'
The plant will consist of four Russian-designed VVER-1200 Generation III+ reactors, each with a capacity of 1,200 megawatts, for a total installed capacity of 4,800 megawatts. Once fully operational, the plant is expected to meet about 10% of Turkey's electricity demand.
