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Puerto Rico

Puerto Rico

Incentives/Policies for Renewables & Efficiency

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Puerto Rico - Economic Development Incentives for Renewables   

Last DSIRE Review: 07/19/2012
Program Overview:
State: Puerto Rico
Incentive Type: Industry Recruitment/Support
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Municipal Solid Waste, Hydrogen, Tidal Energy, Wave Energy, Ocean Thermal
Applicable Sectors: Commercial, Industrial
Amount:4% fixed income tax rate
Start Date:07/13/2009
Web Site: http://www.puertoricodoesitbetter.com/en/how-to-invest/incentives...
Authority 1:
Date Enacted:
Date Effective:
C4350 (2008) Act No. 73
05/28/2008
07/01/2008
Authority 2:
Date Enacted:
C1326 (2009) Act No. 7
03/09/2009
Authority 3:
Date Enacted:
Date Effective:
Hacienda AD 09-05 (in Spanish)
07/13/2009
07/13/2009
Authority 4:
Date Enacted:
Date Effective:
C2610 (2010) Act No. 83
07/19/2010
07/01/2011
Summary:

The 2008 Economic Incentives for the Development of Puerto Rico Act (EIA) provides a wide array of tax credits and incentives that enable local and foreign companies dedicated to certain business activities to operate within Puerto Rico.

Businesses dedicated to the production of energy for consumption in Puerto Rico through the use of renewable sources are eligible companies under the EIA of 2008. In addition, businesses devoted to assembling equipment used to generate energy from renewable resources are eligible. The main economic incentives include:

  • 4% fixed income tax rate for 15 years.
  • Tax credit equal to 50% of the cost of "machinery and equipment for the generation and efficient use of energy"
  • Up to 50% credit of qualified research and development expenses
  • 90% exemption from real and personal property taxes for 15 years

There are additional tax credits available, including tax credits for locating in a "low industrial development zone" or for purchasing products manufactured in Puerto Rico, among others.

To apply for the benefits under the EIA, eligible companies must complete an application (posted on the Office of Industrial Tax Exemption) and submit required documentation to the Office of Industrial Tax Exemption, whose Director will initiate required interagency communications, prepare a "Grant Project" for the Secretary of Development to review and subsequently determine to either grant or refuse the application.

The 2010 Puerto Rico Green Energy Incentives Act (GEI, Act No. 83) provides financial incentives through a special fund called Green Energy Fund. As a result, as of June 30, 2010 eligible "green energy" businesses will have to choose between the new incentives provided by the GEI or those provided via the EIA as described above. Businesses are not permitted to both.


 
Contact:
  Office of Industrial Tax Exemption
Department of Economic Development and Commerce
Office of Industrial Tax Exemption
355 Franklin D. Roosevelt
Hato Rey, PR 00918
Web Site: http://www.ddecpr.com/
 
  General Info EAA
Energy Affairs Administration
P.O. Box 41314
San Juan, PR 00940
Phone: (787) 332-0914
Fax: (787) 721-3089
Web Site: http://www.aaepr.net/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.