If a transportation infrastructure project encouraged under this Statute is evaluated by the Selection Committee that the private entity does not have adequate self-financing ability even if other encouragement measures under this Statute are applicable, the government may subsidize part of interest on the loan needed which is not to be paid off by said entity or invest in part of the construction.
Regulations governing the government subsidy or investment referred to in the preceding Paragraph shall be stipulated by MOTC through consultation with MOF and submitted to the Executive Yuan for approval.
The government subsidy and investment referred to in Paragraph 1 shall be budgeted by the competent authority concerned.

The competent authority may, based upon the financing needs of transportation infrastructure projects, coordinate with financial institutions to grant long term preferential loans to the private entities encouraged under this Statute. The term and the line of credit of such loans shall be free from the limitations prescribed in Articles 33-3, 38 and 84 of the Banking Law.
The difference in interest under the long term preferential loans referred to in the preceding Paragraph shall be subsidized and budgeted by the competent authority concerned.
Regulations governing the long term preferential loans referred to in Paragraph 1 shall be prescribed by MOTC in conjunction with MOF.

A private entity encouraged under this Statute may issue corporate bonds after it has been approved by the competent authorities to operate and to make public offer of its shares, regardless of whether its shares are listed on any stock exchange or not.
Regulations governing examination and approval of the issuance of corporate bonds referred to in the preceding Paragraph shall be stipulated by MOTC in conjunction with MOEA and MOF, and shall be subsequently submitted to the Executive Yuan for approval.

A private entity encouraged under this Statute may be exempted from the business income tax for a maximum period of five(5) years from the year in which taxable income is derived after the commencement of operation of the transportation infrastructure project concerned.
A private entity eligible for the incentive referred to in the preceding Paragraph may within four(4) years from the year in which taxable income is derived after the commencement of operation of the transportation infrastructure project concerned, elect, at its own discretion, to defer the commencement date of the tax exemption period; provided, however, that the maximum period of such deferment shall not exceed three(3) years. The commencement date of such deferred tax-exemption period shall be the first day of a fiscal year.
The scope and the length of period for actual application of the tax exemption benefit referred to in Paragraph 1 shall be determined by MOF through consultation with MOTC and submitted to the Executive Yuan for approval.

A private entity encouraged under this Statute may credit 5% to 20% of the amount of the following expenditures against the business income tax payable for the then current year. In case the amount of business income tax payable for the then current year is less than the amount of creditable expenditures, the balance of such creditable amount may be credited against the amount of business income tax payable for the four(4) ensuing years:
1.Capital expenditures invested in building, operation equipment or technology.
2.Capital expenditures invested in procurement of pollution control equipment or technology.
3.Capital expenditures invested in research and development, and personnel training.
4.Other investment expenditures as approved by the Executive Yuan.
The total amount of investment tax credit against payable income tax in each year referred to in the preceding Paragraph shall be limited to the amount not exceeding 50% of the business income tax payable for the then current year; provided, however, that this limitation shall not apply to the creditable amount in the last year of said four-year period.
The scope of application of the items of investment credit referred to in Paragraph 1, the period of implementing the investment credit incentive and the rates of investment credit against tax shall be determined by MOF through consultation with MOTC and submitted to the Executive Yuan for approval.

The machinery, equipment, special transporting vehicles, training apparatus and the required parts/components thereof which are imported by a private entity encouraged under this Statute for use in building the transportation infrastructure projects concerned shall be exempted from customs duties; provided that the purpose of use of such items is confirmed by MOTC, and it is certified by MOEA that such items have not yet been manufactured and supplied domestically.
For the machinery, equipment, training apparatus, electric multiple unit, high-speed railway cars and the required parts/components thereof which are imported by a private entity encouraged under this Statute for use in the operation of the transportation infrastructure project concerned as confirmed by MOTC with proper tax guarantees for installment payments of the customs duties leviable thereon after expiry of one year from the commencement date of business operation of the the transportation infrastructure project concerned.
In case the items referred to in Paragraph 1 imported by a private entity encouraged under this Statute have been manufactured or supplied domestically and such fact has been confirmed by MOTC, proper tax guarantees may be furnished for installment payment of the customs duties leviable thereon after expiry of one year from the completion date of the transportation infrastructure project concerned.
For cases eligible for installment payments of customs duties pursuant to Paragraphs 2 and 3, if the items so imported are used for purposes other than those originally approved prior to the full payments of customs duties due, the installment payment schedule originally approved shall be abolishment, and the outstanding customs duties shall be collected. In addition thereto, the case shall be dealt with in accordance with the provisions of Article 51 of the Customs Law.
Regulations governing exemption and installment payments of customs duties referred to in the Paragraphs 1 through 3 shall be determined by MOF through consultation with MOTC.

Land value tax, house tax leviable on real estates during the period of building and operation of the approved transportation infrastructure project, and deeds tax leviable on real estates at the time of procurement, may be appropriately reduced or completely exempted as the case may be, provided that said real estates are for direct use by a private entity eligible for encouragement under this Statute.
Criteria for tax reduction or exemption referred to in the preceding Paragraph shall be determined by MOF through consultation with MOTC and be submitted to the Executive Yuan for approval.

In case a private entity encouraged under this Statute suffers serious damages as a result of a natural disaster occurring during the period of its operation, the competent authority shall coordinate with financial institution(s) for an arrangement to extend a serious natural disaster damage recovery loan to said private entity.

Where the registered stocks issued by a private entity encouraged under this Statute upon its incorporation or expansion are held by any individual or profit-seeking enterprise who/which is the original subscriber of such registered stocks for a period over two(2) years, such individual or profit-seeking enterprise may credit up to 20% of the price for acquiring such stocks against the consolidated income tax or business income tax payable by the investor for the then current year. In case the amount of tax payable is less than the amount of creditable expenditures, the balance of such creditable amount, may be credited against the payable income tax in the four(4) ensuing years.
The total amount of investment credit against payable income tax in each year referred to in the preceding Paragraph shall be limited to the amount not exceeding 50% of the amount of the consolidated income tax or the business income tax payable for the then current year by the individual or profit-seeking enterprise; provided, however, that this limitation shall not apply to the creditable amount in the last year of said four year period.

Provisions in this Chapter shall not apply to any ancillary business entity operated by a private entity encouraged under this Statute.