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Green Energy Equipment Assembly/Installation
Tax incentive for businesses assembling or installing green energy equipment in Puerto Rico, supporting clean energy supply chain.
10 min
•
Section Code:
2071.01(8)
•
Purpose:
Infrastructure — 2071.01(8)
Overview
The Green Energy Equipment Assembly/Installation designation under Section 2071.01(8) of Act 60-2019, as amended, provides preferential tax treatment for businesses that assemble or install green energy equipment in Puerto Rico. This designation supports the clean energy supply chain and installation services.
Qualifying businesses may receive reduced corporate income tax rates, property tax exemptions, and municipal tax relief. The program attracts equipment assemblers, installation contractors, and clean energy service providers.
The key distinction of this designation is its focus on equipment assembly and installation services rather than energy generation. These businesses support renewable energy deployment through manufacturing and installation activities.
Puerto Rico's renewable energy growth creates demand for assembly and installation services. The incentive supports businesses in the clean energy supply chain.
Key Benefits
Reduced Corporate Income Tax Rate
Equipment assembly and installation businesses may receive reduced corporate income tax rates.
Property Tax Exemptions
Businesses receive exemptions from property taxes on assembly facilities and equipment.
Municipal Tax Exemptions
Operators may receive exemptions from municipal license taxes.
Supply Chain Development
The designation supports local clean energy supply chain capabilities.
Employment Creation
Assembly and installation create skilled technical employment.
Requirements & Obligations
Equipment Assembly or Installation
Businesses must assemble or install green energy equipment in Puerto Rico.
Green Energy Focus
Activities must relate to renewable or clean energy equipment.
Operations in Puerto Rico
Assembly or installation services must be provided from Puerto Rico operations.
Quality Standards
Equipment and installation must meet appropriate technical and safety standards.
Employment
Businesses must employ Puerto Rico residents.
Reporting
Annual reports document assembly or installation activities.
How to Apply
The application process typically requires four (4) to eight (8) months.
Businesses begin with operations planning. Applications include service descriptions, facility plans, and financial projections.
Review evaluates business viability and clean energy contribution.
Upon approval, decrees specify terms.
This information is educational and should not be considered legal or tax advice. Applicants should consult with qualified legal and tax professionals familiar with Puerto Rico incentive programs before making any business decisions or submitting applications.
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