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Chapter 1 — General Applications
Chapter 1 — General Applications
Chapter 1 establishes the general application framework for tax incentives under Act 60-2019, as amended. It defines overarching rules, eligibility concepts, and procedural standards that apply across incentive designations. This chapter is designed for businesses, investors, and project sponsors who need to understand how the incentive system works before selecting a specific program.
Overview
Chapter 1 establishes the foundation for Puerto Rico's tax incentive system under Act 60-2019, as amended. It covers general applications including strategic projects and pioneering activities—initiatives that deliver exceptional economic value or introduce new industries to Puerto Rico.
Strategic projects receive customized tax treatment based on scale and impact, typically involving major capital investments and substantial job creation. Pioneering activities introduce genuinely new industries or technologies not currently present in Puerto Rico.
Benefits include reduced corporate income tax rates, property and municipal tax exemptions, and long-term decree stability. Eligibility requires demonstrating significant economic contribution, establishing genuine Puerto Rico operations, and meeting employment and investment commitments.
This chapter serves as the gateway for understanding how Act 60 incentives work and guides applicants in selecting the most appropriate designation for their business model.
Available Incentives
Pioneering & New Activities
Tax incentive for businesses introducing new industries, technologies, or economic activities to Puerto Rico that do not currently exist in the territory.
Strategic Projects
Tax incentive for large-scale projects that deliver significant economic impact to Puerto Rico, offering customized benefits based on projected investment, job creation, and strategic value.
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