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Chapter 8 — Agroindustry
Chapter 8 — Agroindustry
Chapter 8 establishes incentives for agroindustrial activities, including agricultural production, processing, biotechnology, and related value-added operations. It supports businesses involved in farming, livestock, agro-processing, hydroponics, aquaculture, and agricultural research and development.
Overview
Chapter 8 provides incentives for agroindustrial activities including farming, crop production, livestock, agro-processing, hydroponics, aquaculture, and agricultural biotechnology. The chapter recognizes agriculture as both a traditional economic pillar and a sector with innovation potential.
Benefits include reduced corporate income tax rates on agricultural income, property tax exemptions on agricultural land and equipment, and municipal tax relief. Some incentives apply to value-added processing and local raw material purchases.
Eligibility requires genuine agricultural activities on Puerto Rico land, compliance with environmental regulations, and demonstrated production and market participation. Specific designations address production methods, processing activities, or agricultural innovation.
The chapter encourages investment in modern production methods and integrated supply chains to improve food security, support rural development, and create export opportunities while promoting sustainable and efficient agricultural systems.
Available Incentives
Purchase Local Raw Materials & Goods
Tax incentive for businesses purchasing significant quantities of local agricultural raw materials and goods from Puerto Rico suppliers.
Fighting Cock Breeding & Spur Reproduction
Tax incentive for fighting cock breeding and spur reproduction operations supporting culturally significant activities.
Mariculture/Commercial Fishing/Aquaculture
Tax incentive for mariculture, commercial fishing, and aquaculture operations supporting seafood production.
Dairy Producers/Processors/Sterilizers
Tax incentive for dairy production, processing, and sterilization operations supporting Puerto Rico's dairy industry.
Hydroponic & Other Methods (Vegetables)
Tax incentive for hydroponic and innovative vegetable production methods supporting efficient modern agriculture.
Ornamental Flowers
Tax incentive for ornamental flower and decorative plant production supporting Puerto Rico's floriculture industry.
PR Dairy Industry Inc.
Tax incentive specifically for Puerto Rico Dairy Industry Inc., supporting the island's dairy production infrastructure.
Packaging Firm (Ag products only)
Tax incentive for packaging firms specializing in agricultural products, supporting value-added agriculture.
Fruits/Vegetables/Seeds/etc.
Tax incentive for cultivation of fruits, vegetables, seeds, and related crops in Puerto Rico, supporting crop production.
Animal Raising
Tax incentive for livestock and animal raising operations in Puerto Rico, supporting meat, poultry, and animal production.
Racehorse/Paso Fino/Other Horses
Tax incentive for horse breeding and raising operations in Puerto Rico, including racehorses, Paso Fino horses, and other equine activities.
Grain Processing Plants
Tax incentive for grain processing plants including milling and grain product manufacturing operations.
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