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Chapter 12 — Economic Development Fund (Subtitle E)
Chapter 12 — Economic Development Fund (Subtitle E)
Chapter 12 establishes the Economic Development Fund (EDF) framework under Subtitle E of Act 60-2019, as amended. It governs how certain incentives and financial support mechanisms are channeled through a centralized fund to promote strategic projects, investments, and sector-specific initiatives.
Overview
Chapter 12 establishes the Economic Development Fund (EDF) under Subtitle E, providing a centralized mechanism to support strategic projects and sector-specific initiatives. The fund channels financial support for machinery and equipment, property improvements, employment creation, and creative industries.
Unlike tax rate reductions, the fund provides direct financial assistance including grants, contributions, or other instruments tied to qualifying activities. This complements tax decree mechanisms by addressing specific capital and investment needs.
Eligibility depends on alignment with policy priorities such as job creation, sectoral focus, geographic location, or innovation contribution. Applicants submit detailed proposals including investment budgets, timelines, and economic impact metrics.
The fund can enhance incentives available elsewhere in Act 60. A manufacturing, tourism, or creative project might rely primarily on sectoral tax benefits while seeking EDF support for specific capital investments or employment measures, creating comprehensive support for qualifying projects.
Available Incentives
Employment Creation
Financial support tied to employment creation, providing businesses with grants based on new jobs created in Puerto Rico.
Economic Development Fund
Financial support mechanism providing grants or credits for capital investments, employment creation, and economic development activities.
Machinery & Equipment
Financial support for acquiring machinery and equipment, reducing capital barriers to business establishment and expansion.
Film Industry of Puerto Rico (EDF)
Financial support for film industry infrastructure development and capacity building, complementing production tax incentives.
Creative Industries (EDF)
Financial support for creative industries infrastructure and ecosystem development across digital media, design, arts, and entertainment.
Property Improvement
Financial support for property improvements including construction, renovation, and infrastructure development.
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