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(…) Loans are provided for refurbishing and upgrading hotels of 200 rooms or less and facilities for historical, cultural, and natural heritage attractions through the Tourism Loan Fund with an interest rate of 7.5%. The Government set up this fund with an initial contribution of BDS$30 million (US$15 million) and confirm that funding is available equally to citizens, residents, and foreigners.

The Tourism Development Act Cap 341 was amended in 2002 to increase the scope of the application of tax incentives to also include restaurants, recreational facilities, tourism-related services, cultural and natural sites, and any other tourism project. These tax incentives included customs duty exemptions for the import of building materials and a range of furniture and fixtures. The Tourism Development Order 2013 extended the range of items eligible for duty-free concessions for tourism projects or products. These items are listed in the second schedule to the Act.

Income tax concessions and exemptions from import duties, VAT and the environmental levy are also available to owners or operators of tourism products. In addition, investors (including persons providing loans) are eligible for an investment tax credit to be offset against tax payable. (…)

Under the Special Development Areas Act, developers involved in constructing, renovating or refurbishing buildings related to certain tourism activities in specific areas of the country are eligible for exemption from certain taxes. Tax exemptions relate to the payment of import duties, the environmental levy and VAT on inputs for building works. Investors making loans for such projects are also exempt from income tax on the interest received.

In its effort to reduce its fuel import bill, Government is committed to the construction of a waste to energy facility. Given Government’s commitment to a clean and sustainable environment, this investment is seen as one which will assist in reducing much of the country’s solid waste, while generating a significant portion of the island’s power requirements.

It is expected that the waste to energy project will assist Barbados in reaching its target of replacing 29% of its oil based electricity by the generation of renewable and alternative energy.

The Innovation Fund (IF) invests in commercially viable innovative projects in a wide range of sectors including: environmental and waste management; cultural activities; information technology; energy conservation; tourism product innovation/diversification; and non-traditional agriculture/agro-business. Beneficiaries can receive between BDS$25,000 and BDS$250,000 in equity funding from the IF. No security is required to access IF funding. No monthly interest or annual dividend payments are required if common shares are purchased. However, annual dividend payments ranging from 8% to 10% are requested if preferred shares are purchased. IF usually invests for 5 to 7 year periods, with the possibility of extending the investment period to 10 years. The IF had approved 14 grants for a total of BDS$3.69 million as at 31 December 2013; approvals reached BDS$2.23 million at the same date.

Government is also granting incentives to encourage the use of solar and photovoltaic systems in both commercial and residential sectors in its efforts to reduce the high fuel import bill of the country.

The Government is committed to introducing clean energy technologies and energy conservation techniques thereby minimizing its dependence on fossil fuel.

The EGFL (Enterprise Growth Fund Ltd.) also manages the Energy Smart Fund which provides grants and loans to Barbadian businesses that invest in viable Energy Efficient (EE) and Renewable Energy (RE) projects and solutions. The Fund also provides grants to households through selected retailers to encourage the adoption of EE technologies. Each beneficiary can receive BDS$40,000 for technical assistance, to be used only for pre-investment studies. The maximum loan size is BDS$1.5 million per applicant. Priority for funding is given to Barbados-owned businesses incorporated under the Companies Act that meet the following criteria: gross sales/revenues not exceeding BDS$5 million per year; stated or paid-up capital not exceeding BDS$2 million; over 50% of shares must be Barbados-owned; and applicants must not be controlled by another business whose reserves and/or capital or non-Barbados ownership exceed the criteria above. The interest rate is currently 3.75% per annum on the reducing balance, with a maximum repayment period of 10 years. Loans approved under the Fund totalled BDS$5.44 million as at 31 December 2013; however only BDS$656,000 had been disbursed at that date.