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Last Updated July 15, 2021

Program Overview


Financial Incentive


Puerto Rico

Incentive Type:

Industry Recruitment/Support



Start Date:


Expiration Date:


Web Site:


Applicable Sectors:


Eligible Renewable/Other Technologies:



This incentive is now only effective for businesses that have requested or are requesting an extension of their exemptions under the The Puerto Rico Tax Incentives Act.

The Puerto Rico Tax Incentives Act of 1987, established an exemption on industrial income, municipal and Commonwealth taxes on real and personal property, license fees, excise, and other municipal taxes for a multitude of industries. The act also created a fund of 7,500,000 dollars to promote scientific and technical research as well as to develop special programs for  chronic unemployment, and those underprivileged and financially distressed.  

Businesses eligible for this incentive include but are not limited to: producers of energy on a commercial scale for consumption in P.R. using local renewable resources. Renewable resources include vegetation and other forms of biomass, solid waste, direct solar and wind energy, subject to the condition that the Office of Energy shall previously approve such unit.

Exempted businesses shall receive for the corresponding time period:

  • Exemption on ninety percent (90%) of their industrial development income.
  • Ninety percent (90%) exemption on municipal and Commonwealth taxes.
  • Sixty percent (60%) exemption on license fees, excise and other municipal taxes.

Tax Exemption Periods Include

  • High industrial development zone—ten (10) years.
  • Intermediate industrial development zone—fifteen (15) years.
  • Low industrial development zone—twenty (20) years.
  • Vieques and Culebra—twenty-five (25) years.

 Any exempted business may request an extension of its decree for ten (10) additional years. Businesses that avail themselves of the extension will receive conditional benefits differing from those stated above.