Puerto Rico - Excise Tax Exemption for Farmers

June 04, 2025

Summary

In Puerto Rico, "bona fide farmers" are exempted from paying sales and use tax on equipment, devices, and objects that operate solely on solar, wind, hydro, or any other type of power, excluding the power from petroleum and its derivatives. A farmer must be certified by the Department of Agriculture to be considered a "bona fide farmer" or "bona fide agricultural business." This exemption is part of a larger tax package aimed at supporting Puerto Rican farmers.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Puerto Rico
Incentive Type:	Sales Tax Incentive
Web Site:
Administrator:	Departmento de Hacienda
Start Date:
Eligible Renewable/Other Technologies:	Solar Water Heat Solar Space Heat Solar Thermal Process Heat Solar Photovoltaics Wind (All) Hydroelectric (Small)
Incentive Amount:	100% exemption

Incentives

This program has 1 incentives

Technologies:	Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Solar Photovoltaics, Wind (All), Hydroelectric (Small)
Sectors:	Agricultural
Parameters:	The incentive is 100.00 %

Authorities

Name:	13 L.P.R.A. § 32073 (Sub. 17, Ch. 1043)
Date Enacted:	01/31/2011

Name:	Act No. 1-2011 (Sec. 4030.22)
Date Enacted:	01/31/2011

Contact

Name:	General Info D.A.
Organization:	Department of Agriculture
Address:	P.O. Box 10163 Santurce PR 00909
Phone:	(787) 721-2120

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.