Excise Tax Exemption for Farming Businesses (Puerto Rico)

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Last modified on May 23, 2011.

Financial Incentive Program

Place Puerto Rico

Name Excise Tax Exemption for Farming Businesses
Incentive Type Sales Tax Incentive
Applicable Sector Agricultural
Eligible Technologies Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Hydroelectric, Geothermal Heat Pumps
Active Incentive No

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100%

Equipment Requirements Equipment must be used in the operation and development of the business

Program Administrator Energy Affairs Administration

Date added to DSIRE 2002-10-21
Last DSIRE Review 2008-01-17

References DSIRE[1]


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.

Authorities (Please contact the if there are any file problems.)

Authority 1: Title 13 L.P.R.A., Section 9030

Incentive Contact

Contact Name Ing. Jose Benitez
Department Energy Affairs Administration

Address P.O. Box 41314

Place San Juan, Puerto Rico
Zip/Postal Code 00940
Phone (787) 999-2200 Ext:x.2886

Email jbenitez@aae.gobierno.pr
Website http://www.aae.gobierno.pr

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"