Excise Tax Exemption for Farming Businesses

January 17, 2008


Individuals who operate a farming business are exempt from paying excise tax on "equipment, devices, or objects whose operation depends exclusively on solar, wind, hydraulic or any type of energy, excluding energy produced by petroleum or its derivatives." An individual who wishes to take advantage of the exemption must comply with documentation requirements certifying that he/she is a "bona fide farmer." To be considered a bona fide farmer, one must hold a certificate issued by the Secretary of Agriculture certifying that they are engaged in the conduct of an agricultural business, and derive fifty percent (50%) or more of their gross income from that agricultural business as an operator, owner or lessee, as declared on their income tax return.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Puerto Rico
Incentive Type: Sales Tax Incentive
Web Site:
Administrator: Energy Affairs Administration
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Solar Space Heat
  • Solar Thermal Process Heat
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Hydroelectric
  • Geothermal Heat Pumps
  • Wind (Small)
Incentive Amount: 100%
Equipment Requirements: Equipment must be used in the operation and development of the business


Name: Title 13 L.P.R.A., Section 9030


Name: Ing. Jose Benitez
Address: P.O. Box 41314
San Juan PR 00940
Phone: (787) 999-2200
Email: jbenitez@aae.gobierno.pr

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.