Puerto Rico - Economic Development Incentives for Renewables (Puerto Rico)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Puerto Rico - Economic Development Incentives for Renewables|
|Incentive Type||Industry Recruitment/Support|
|Applicable Sector||Commercial, Industrial|
|Eligible Technologies||Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Municipal Solid Waste, Hydrogen, Tidal Energy, Wave Energy, Ocean Thermal|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||4% fixed income tax rate|
|Program Administrator||Office of Industrial Tax Exemption|
|Date added to DSIRE||2008-12-18|
|Last DSIRE Review||2012-07-19|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
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:
- 4% fixed income tax rate for 15 years.
- Tax credit equal to 50% of the cost of "machinery and equipment for the generation and efficient use of energy"
- Up to 50% credit of qualified research and development expenses
- 90% exemption from real and personal property taxes for 15 years
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 interagency 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.
|Contact Name||Office of Industrial Tax Exemption|
|Department||Department of Economic Development and Commerce|
|Division||Office of Industrial Tax Exemption|
|Address||355 Franklin D. Roosevelt|
|Place||Hato Rey, Puerto Rico|
|Contact Name||General Info EAA|
|Department||Energy Affairs Administration|
|Address||P.O. Box 41314|
|Place||San Juan, Puerto Rico|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||C4350 (2008) Act No. 73|
|Authority 2:||C1326 (2009) Act No. 7|
|Authority 3:||Hacienda AD 09-05 (in Spanish)|
|Authority 4:||C2610 (2010) Act No. 83|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.