The MIni-Hydroelectric Power Incentive Act mandates the collection of a 2% special privilege tax (SPT) from mini-hydroelectric power developers. The SPT shall be computed on the gross receipts from the sale of electric power and from transactions incident to the generation, transmission and sale of electric power. It also grants the host local government units (LGUs) a 60% share on the SPT collections with the remaining 40% accruing to the national government. The law also provides that the total SPT collections must first be remitted by the Bureau of Internal Revenue (BIR) to the National Treasurer prior to release to the LGU concerned. However, up to now, the LGUs still have to receive their share of the SPT collections. To ensure receipt by the LGUs of their rightful share in the SPT collections, the bill proposes that 60% of the SPT collections be paid directly to the host LGU and that only the remaining 40% share of the national government be paid to the BIR.