Puerto Rico - Solar Tax Credit (Corporate)

August 08, 2010


The tax credits for FY2011 will not be available; the Puerto Rican Department of Revenue has suspended this tax credit. Puerto Rico enacted legislation in August 2008 in an effort to reduce its 68% reliance on fossil fuels for electricity generation. Act 248 provides a corporate tax payer with a credit for acquiring and installing "solar electric equipment." The credit is allowed against the taxpayer's income tax. During fiscal years 2007-08 and 2008-09, the credit amount is 75% of the cost of the equipment and installation. During fiscal years 2009-10 and 2010-11, the credit is 50% of the cost of the equipment and installation. During fiscal year 2011-12 and beyond, the tax credit is limited to 25% of the cost of equipment and installation. In order to apply for the credit from the Secretario de Hacienda (Department of Revenue), the taxpayer must provide the following documentation:

  • Certification that the solar equipment conforms to the Energy Affairs Administration (EAA) norms and specifications, issued by the EAA.
  • Certification that the equipment has been installed by an EAA certified and registered installer.
  • A five-year factory or distributor warranty for the solar equipment.
  • Declaration that the taxpayer has no outstanding debts with the Secretario de Hacienda or Centro de Recaudaciones de Ingresos Municipales (Department of Municipal Revenue Collection).
  • A completed application form
If approved, the credit shall be taken during the year of the installation. However if the amount of credit exceeds the taxpayer's liability, the excess credit may be carried forward for up to ten years. In addition, full or partial credit may be transferred, sold or given to any other person. Additional procedures must be followed with the Secretario de Hacienda in order to carry out the credit transfers. The Secretario de Hacienda is authorized to issue up to $15,000,000 of solar income tax credits to corporate tax payers per year, and has the authority to increase the total amount for any given year if it determines that increase to be in the best interest of Puerto Rico. Individuals and/or companies that have received this tax credit must complete and file form 480.71 by August 31, 2009 to the Puerto Rican Secretario de Hacienda to retain the unused portions of the previously granted credits for tax years 2009 and beyond. See the form for complete instructions. This is required as a result of Act #7 the Special Law Declaring Financial Emergency and Creation of Integral Stabilization Plan to Save Puerto Rico's Credit, that passed in March 2009.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Puerto Rico
Incentive Type: Corporate Tax Credit
Web Site:
Administrator: Energy Affairs Administration
Start Date: 2008
Eligible Renewable/Other Technologies:
  • Solar Thermal Electric
  • Solar Photovoltaics
Incentive Amount: 75% during FY 2008-09; 50% during FY 2009-10 and FY 2010-11; 25% starting FY 2011-12
Maximum Incentive: $15,000,000 in income tax credits available to all Puerto Rican corporate tax payers per year
Eligible System Size: Not specified
Equipment Requirements: System must be certified by AAE that it complies with AAE norms and specifications; must carry a 5-year factory (or distributor) warranty.
Installation Requirements: System must be installed by AAE certified installer.
Carryover Provisions: Excess credit may be carried over 10 years


Name: C3268 (2008) Act No. 248 (in Spanish)
Date Enacted: 08/10/2008
Effective Date: 08/10/2008
Name: C1326 (2009) Act No. 7 (in Spanish)
Date Enacted: 03/09/2009
Name: Hacienda AD 09-05 (in Spanish)
Date Enacted: 07/13/2009
Effective Date: 07/13/2009


Name: Departamento de Hacienda
Address: PO Box 9024140
San Juan PR 00902
Phone: (787) 721-2020
Email: forms@hacienda.gobierno.pr
Name: Autoridad de Energía Eléctrica (AEE)
Address: PO Box 364267
San Juan PR 00936
Phone: (787) 521-3434
Email: info@prepa.pr.gov

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.