Puerto Rico - Economic Development Incentives for Renewables (Puerto Rico)

This is the approved revision of this page, as well as being the most recent.
Jump to: navigation, search

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Puerto Rico

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
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 4% fixed income tax rate







Start Date 2009-07-13


















Program Administrator Office of Industrial Tax Exemption
Website http://www.puertoricodoesitbetter.com/en/how-to-invest/incentives/Pages/default.aspx
Date added to DSIRE 2008-12-18
Last DSIRE Review 2012-07-19



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

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.


Incentive Contact

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
Zip/Postal Code 00918




Website http://www.ddecpr.com/
Contact Name General Info EAA
Department Energy Affairs Administration

Address P.O. Box 41314

Place San Juan, Puerto Rico
Zip/Postal Code 00940
Phone (787) 332-0914



Website http://www.aaepr.net/
     

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

Authority 1: C4350 (2008) Act No. 73
Date Effective 2008-07-01
Date Enacted 2008-05-28


Authority 2: C1326 (2009) Act No. 7

Date Enacted 2009-03-09


Authority 3: Hacienda AD 09-05 (in Spanish)
Date Effective 2009-07-13
Date Enacted 2009-07-13


Authority 4: C2610 (2010) Act No. 83
Date Effective 2011-07-01
Date Enacted 2010-07-19
















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

References

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