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Enterprises with foreign investment established in the Hainan Special Economic Zones and engaged in infrastructure projects such as water conservation projects with an operation period of no less than fifteen years (enterprise income tax exemption in the first 5 years and reduction by half in the following 5 years, starting from the year beginning to make profit)

Domestic enterprises which are newly established in the western regions and engaged in business such as water conservancy whose revenue from those business accounts for over 70% of total revenue (enterprise income tax exemption in the first 2 years and reduction by half in the following 3 years, starting from the year beginning production or operation)

Investment in and operation of public infrastructure projects such as water conservancy projects as specified in the Catalogue of Public Infrastructure Projects for Preferential Enterprise Income Tax Treatment (enterprise income tax exemption in the first 3 years and reduction by half in the following 3 years, starting from the year receiving income from the projects' operation or production)

1) Income derived by an enterprise from the qualified projects of environmental protection or energy and water conservation such as projects of public sewage treatment, public refuse treatment, comprehensive development and utilization of methane, technological upgrading for energy conservation and discharge reduction, and seawater desalination etc. shall, starting from the year receiving income from the projects' operation or production, be exempted from enterprise income tax in the first year through the third year and allowed a tax reduction by half in the fourth year through the sixth year;

2) Where an enterprise purchases and actually uses the equipment specially designed for environmental protection, energy and water conservation, safe production etc. as specified in the Catalogue of Special Environmental Protection Equipment for Preferential Enterprise Income Tax Treatment, the Catalogue of Special Energy and Water Conservation Equipment for Preferential Enterprise Income Tax Treatment and the Catalogue of Special Safe Production Equipment for Preferential Enterprise Income Tax Treatment, 10% of its investment in the special equipment may be credited against its tax payable for the current year, and any amount that is not credited in that year may be carried forward and credited in the following five tax years.

If an enterprise uses the resources specified in the Catalogue of Comprehensive Use of Resources for Preferential Enterprise Income Tax Treatment as its main raw materials to manufacture products listed in the same Catalogue that meet relevant national and industrial standards, its income thus derived shall be included in the total taxable income of the enterprise at a reduced amount of 90%

The VAT on recycled water, rubber powder which is made of junked tires entirely, retreads, special building materials products which contain no less than 30% waste residues in raw materials shall be exempted

The VAT on building gravel aggregates which have building (structure) wastes and gangues as raw materials shall be exempted

50% of the VAT on some parts of new-type wall material products shall be refunded upon collection

The VAT on high-purity carbon dioxide products which are made from industrial waste gases, electricity or heat generated from wastes (including biogas from waste fermentation), shale oils which are made from oil shale as a kind of waste associated with coal mining, recycled asphalt concrete which are made from waste asphalt concrete, cement (including cement clinker) which are made by rotary kiln process or cement made by grinding purchased cement clinker shall be fully refunded upon collection

The VAT on electricity and heat generated from waste heat or excess pressure associated with industrial production; electricity, heat and fuels made from raw materials such as kitchen wastes, livestock excrements, rice husk, peanut hull, corncob, oil-tea camellia shell, cottonseed hull, three remains, shoddy and little fuelwood, oily sewage, organic wastewater, sludge from wastewater treatment, oily sludge (dross) from oil field production as well as the biogas from the fermentation of the above items; dry sludge and fuels made from the sludge associated with sewage treatment; feed-grade mixed oil made from waste animal oil and vegetable oil; industrial oils such as lubricant base oil, gasoline and diesel which are made from reclaimed used mineral oils; emulsified oil blender, waterproof roll and other accessories made from the oily sludge (dross) associated with oil field production; and wigs made from human hair shall be fully refunded upon collection