If the authority in charge of an infrastructure project determines that a private institution cannot fully self-finance its investment in the infrastructure project even if other incentives under this Act are applicable, the authority in charge may, for the insufficiently self-financed portion, subsidize part of the interest on the loan needed by the private institution or grant a subsidy, depending on the operating performance, and stipulate such subsidy in the concession agreement.
If an authority in charge conducts an infrastructure project in accordance with the preceding Paragraph, the authority in charge shall, prior to working on the project, submit the construction plan, the proposals for the relevant subsidies, and the financial plan to the Executive Yuan or the competent local government for approval.
The subsidies under Paragraph 1 shall be handled in accordance with the relevant budgeting procedures.

The authority in charge may, depending on the financing needed for infrastructure projects, negotiate with financial institutions or special funds for provision of medium- or long-term loans to the relevant private institutions, provided that where the loan guarantees or other measures provided by the authority in charge carry contingent liabilities, such guarantees and measures are subject to the review and approval of the relevant civil representative bodies.

Where a financial institution extends credit to a private institution for use in a major transportation infrastructure project to support a government policy, and obtains the approval of the Financial Supervisory Commission ("FSC") for such credit, the line of such credit shall not be subject to the restrictions under Articles 33-3, 38, and 72-2 of the Banking Law.

Where any foreign corporate financial institution participates in the syndication of loans to a private institution hereunder, such foreign financial institution shall have the same ability as a domestic company to enjoy the rights and to assume the obligations arising from the financing.

A private institution participating in the infrastructure project hereunder may offer new shares to the public, without being subject to the restrictions under Subparagraph 1 of Article 270 of the Company Law; provided, however, that if the private institution has incurred losses in two consecutive years or more, a settlement plan thereof shall be submitted and the relevant information shall be fully disclosed.

A private institution which has become a public offering company according to law may issue non-discretionary corporate bonds to raise the funds required for the infrastructure project concerned, without being subject to the restrictions under Article 247, Subparagraph 2 of Article 249 and Subparagraph 2 of Article 250 of the Company Law; provided, however, that the total issued amount shall be subject to the consent of the authority in charge of the securities after consultation with the central authorities in charge of the relevant industries.

If, during the building or operation of an infrastructure project, the private institution concerned sustains material damage as a result of a natural disaster, the authority in charge shall join the FSC and the relevant competent authorities in negotiating with financial institutions or special funds for extending serious natural disaster recovery loans to the private institution.

A private institution participating in a major infrastructure project may be exempted from business income tax for a maximum period of five (5) years from the year in which taxable income is derived after the infrastructure begins operations.
For a major infrastructure project, the private institution as referred to in the preceding Paragraph may, within four (4) years from the year in which taxable income is derived after the infrastructure project begins operations, elect at its sole discretion to defer the commencement date of the tax exemption period, provided that the maximum period of such deferral is three (3) years, and the commencement date of such deferred tax-exemption period is the first day of a fiscal year.
The scope and the period of the tax exemption as referred to in Paragraph 1, and the authority granting the approval, the deadline and the procedure for application, the implementation period, supplemental tax payment, and other relevant matters shall be prescribed by the competent authority in conjunction with the central authorities in charge of the relevant industries.

A private institution participating in a major infrastructure project may credit five percent (5%) to twenty percent (20%) of the following expenditures on the project against the business income tax payable by it for the then current year. If the amount of the business income tax payable for the then current year is less than the amount of the creditable expenditures, the balance thereof may be credited against the profit-seeking enterprise income tax payable in the four (4) years following the then current year:
1. Capital expenditures invested in building or operating equipment or technology;
2. Capital expenditures invested in procurement of pollution-control equipment or technology; and
3. Capital expenditures invested in research and development, and personnel training.
The total investment expenditures creditable against the profit-seeking enterprise income tax payable in each year under the preceding Paragraph shall not exceed fifty percent (50%) of such income tax payable by the private institution for the then current year, except in the last year of the four-year period.
The applicable scope of each Subparagraph in Paragraph 1, the authority granting the approval, the deadline and the procedure for application, the implementation period, supplemental tax payment, and other relevant matters shall be prescribed by the competent authority in conjunction with the central authorities in charge of the relevant industries.

Customs duties on the construction machinery and equipment, special transporting vehicles, training facilities, and the required parts/components thereof imported by a private institution or its direct contractor(s) for use in building a major infrastructure may be exempted if the purpose for use of such items is confirmed by the authority in charge, and the Ministry of Economic Affairs confirms that such items have not yet been manufactured or supplied domestically.
Customs duties on the machinery and equipment, training facilities, and the required parts/components thereof imported by a private institution for use in the operation of a major infrastructure project may be paid in installments one year after the date of the major infrastructure project concerned enters operation, if the purpose for use of such items is confirmed by the authority in charge, and the private institution furnishes a guarantee acceptable to the authority.
If the authority in charge proves that the machinery and equipment imported by a private institution in accordance with Paragraph 1 have been manufactured or supplied domestically, customs duties on such imports may be paid in installments one year after the infrastructure is constructed, with a guarantee acceptable to the authority from the private institution.
If, before the customs duties are fully paid, the ownership of any machinery or equipment on which the customs duties is paid in installments in accordance with Paragraphs 2 and 3 is assigned or used for any purpose other than those originally approved, the outstanding customs duties shall be paid in a lump sum within a given time limit in accordance with the Customs Act, provided that if such assignment is specially approved by the competent authority, the assignee thereof may continue to pay the outstanding customs duties in installments.
The regulations governing exemption from, installment payments of, and supplemental payment of, customs duties under Paragraphs 1 to 3 shall be prescribed by the competent authority.

The land value tax and the housing tax leviable on the real estate for direct use by a private institution during the building or operations of a major infrastructure project in which the private institution participates, and the deed tax leviable at the time of acquisition of such real estate may be reduced or completely exempted at the discretion of the authorities.
The tax exemption or reduction period, the scope thereof, the criteria and procedures therefor, and the supplemental tax payment as referred to in the preceding Paragraph shall be prescribed by the relevant municipal/county/city governments, submitted to the relevant municipal/county/city councils for approval, and filed with the competent authority for recordation.

Where a profit-seeking enterprise subscribes for or underwrites registered shares issued by a private institution participating in a major infrastructure project upon its incorporation or expansion, and has held such registered shares for a period of four (4) years or more, such profit-seeking enterprise may credit up to twenty percent (20%) of the subscription price against the profit-seeking enterprise income tax payable for the current year. Where the amount of profit-seeking enterprise income tax payable is less than the amount creditable, the balance thereof may be credited against the profit-seeking enterprise income tax payable in the four (4) years following the current year.
The total amount of investment credit against the payable profit-seeking enterprise income tax in each year as referred to in the preceding Paragraph shall not exceed fifty percent (50%) of the profit-seeking enterprise income tax payable by the profit-seeking enterprise concerned for the current year, provided that this restriction does not apply to the amount creditable in the last year of such a four-year period.
The authority approving investment credit, the application time limit and procedures, the implementation period, the rates of tax credit, and the regulations for supplemental payment and the relevant matters shall be prescribed by the competent authority in conjunction with the central authorities in charge of the relevant industries.

Provisions in this Chapter shall not apply to any of the ancillary businesses operated by a private institution hereunder in accordance with Article 13 of this Act.