In order to assist and promote the growth and use of renewable energy, Puerto Rico has recently passed “The Economic Incentives for the Development of Puerto Rico Act (EIA)”
This legislation provides a wide range of tax credits and incentives that enable local and foreign companies dedicated to renewable energy to operate within Puerto Rico while taking advantage of a foreign tax structure.
Businesses that are dedicated to the production of clean energy for consumption in Puerto Rico, using renewable sources, are eligible under the EIA of 2008.
In addition, businesses in the field of manufacturing or assembling equipment which is used to generate energy from renewable resources can qualify as well.
Some of the key economic incentives being offered are as follows:
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
Additional tax credits including tax credits for relocating in a “low industrial development zone” or for purchasing locally manufactured products are available as well.
To receive benefits under the EIA, companies must complete an application (posted on the Puerto Rico Industrial Development Company web site) and submit required documentation to the Office of Industrial Tax Exemption, whose Director will initiate required inter-agency communications and prepare a “Grant Project” for the Secretary of Development to review.
For further information and specifics, contact:
Dr. Javier A. Quintana Mendez
Department of Economic and Commercial Development
Energy Affairs Administration
P.O. Box 366147
San Juan, PR 00936
Phone: (787) 999-2200 Ext.2888
Fax: (787) 999-2246
E-Mail: jquintan@ads.gobierno.pr
Web site: http://www.aae.gobierno.pr
Office of Industrial Tax Exemption
Department of Economic Development and Commerce
Office of Industrial Tax Exemption
355 Franklin D. Roosevelt
Hato Rey, PR 00918
Web site: http://www.ddecpr.com/
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