Green Energy, formerly Act 83-325
One of the key objectives of the new code is to take intense action to modernize infrastructure and reduce energy costs through investment in infrastructure and the use of alternative sources of renewable energy. This incentive is eligible to highly efficient energy-producing businesses dedicated to the production, sale, or operation on a commercial scale for consumption in Puerto Rico as well as property dedicated to the production of green energy and equipment assembly, including installation of highly efficient generation systems.
Our White Paper on Green Energy, Chapter 7 of Subchapter B of the new code (formerly Act 83-325) describes the available tax benefits such as a preferential rate on net income of 4%, 0% federal income taxes, 100% tax exemption on dividends or profit distributions, 75% exemption on property tax, 50% on municipal license taxes, 100% exemption on excise taxes and sales and use tax, just to name a few. It also explains how to set the dates of commencement of the operations, the exemption periods, and the evaluation criteria guiding principles for a green energy activity.