TAX BENEFITS – (Taken directly from DSIRE website)
A corporation is allowed to receive tax credits equal to 50% of the installation and materials costs according to PR Act 248 of 2008 up to the maximum amount of credit ($15,000,0000) assigned by the Department of Revenue (Hacienda) each year. If the project is destined for net metering, then the project maximum size is 1MW per farm - that means that each project should consist of a system as large as 1 MW in order to be allowed to interconnect through PREPA.
- 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 Puerto Rico Industrial Development Company web site) 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.
"To learn which tax incentives apply to your project please click here".
