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:
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 inter agency 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.
|Incentive Type:||Industry Recruitment/Support|
|Administrator:||Office of Industrial Tax Exemption|
|Eligible Renewable/Other Technologies:||
|Incentive Amount:||4% fixed income tax rate|
|Name:||C4350 (2008) Act No. 73|
|Name:||C1326 (2009) Act No. 7|
|Name:||Hacienda AD 09-05 (in Spanish)|
|Name:||C2610 (2010) Act No. 83|
|Name:||Office of Industrial Tax Exemption|
|Organization:||Department of Economic Development and Commer|
355 Franklin D. Roosevelt
Hato Rey PR 00918
|Name:||Autoridad de Energía Eléctrica (AEE)|
PO Box 364267
San Juan PR 00936
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.
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