The National Government issued Legislative Decree 1389 of September 9, 2026, temporarily creating the special Works-for-Taxes mechanism for Reconstruction, within the framework of the Economic, Social and Ecological Emergency declared as a result of the earthquake of August 10, 2026 (Decree 1261 of 2026, amended by Decree 1348 of 2026).

The special mechanism includes, among others, the following aspects:

1. It applies in the municipalities covered by Decree 1261 of 2026 (and those subsequently added for the same reason), with respect to individuals or entities whose direct impact from the earthquake is evidenced; the initial absence from a registry does not prevent evidencing the impact through other verifiable means.
2. It finances projects under 10 investment lines (social-interest housing, education, health, drinking water, energy, road infrastructure, ICT, rural/productive assets, sports infrastructure, and risk management), provided they are directly related to earthquake damage.
3. Taxpayers may under no circumstance use this mechanism to finance the reconstruction of assets they own or that are mainly intended for their own use or benefit; projects must be public-investment in nature.
4. The Project Bank for Reconstruction Works-for-Taxes is created, managed by the ART (Territorial Renewal Agency), with its own calendar and technical feasibility review within 15 business days of complete filing of the project.
5. Of the CONFIS quota assigned to the special mechanism, at least 35% must be allocated to projects in fifth- and sixth-category municipalities affected by the earthquake.
6. Extraordinary taxpayer enrollment windows and advance contributions to the trust (Article 238 of Law 1819 of 2016) are enabled, up to 50% of the income tax payable for the prior taxable year, with any subsequent offsetting also capped at 50% of the tax payable for the current year.
7. The tax obligation is extinguished once the competent national entity certifies satisfactory delivery and receipt of the works, based on the interventoría's report; the DIAN only records the offset in the taxpayer's account and does not verify the technical, physical, contractual, or budgetary aspects of the project.
8. The DNP, with support from the UNGRD, will define in the Operating Manual the prioritization methodology for projects (magnitude of impact, criticality, beneficiary population, technical maturity, among others).

It is important to note that:

The Operating Manual for Reconstruction Works-for-Taxes, to be issued by the ART (Agencia de Renovación del Territorio) and the DNP (Departamento Nacional de Planeación), must be adopted within the month following the decree's entry into force, and may not expand its material or territorial scope or introduce exceptions beyond those expressly provided. Likewise, projects financed under this mechanism may not be funded, in whole or in part, with resources from the SISMO 2026 Sub-account, the General Royalties System, the National General Budget, or any other public source earmarked for recovery and reconstruction.

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