Search
Agricultural R&D
Tax incentive for agricultural research and development activities in Puerto Rico, supporting innovation in agriculture.
10 min
•
Section Code:
2081.01(b)
•
Purpose:
Agroindustry — 2084.01
Overview
The Agricultural R&D designation under Section 2081.01(b) of Act 60-2019, as amended, provides preferential tax treatment for agricultural research and development activities in Puerto Rico. This designation supports innovation in agriculture, crop science, and farming technologies.
Qualifying agricultural R&D operations may receive reduced corporate income tax rates on research income, property tax exemptions on research facilities, and municipal tax relief. The program attracts agricultural research organizations, crop science companies, and agtech innovators.
The key distinction of this designation is its focus on agricultural research rather than agricultural production. Agricultural R&D includes crop development, farming technology innovation, agricultural science research, and related innovation activities.
Puerto Rico's agricultural conditions and research capabilities support agricultural R&D. The incentive encourages agricultural innovation that can improve farming productivity, develop new crop varieties, or advance agricultural technologies.
Key Benefits
Reduced Corporate Income Tax Rate
Agricultural R&D operations may receive reduced corporate income tax rates on income from agricultural research activities.
Property Tax Exemptions
Research operations receive exemptions from property taxes on research facilities, laboratories, test plots, and equipment.
Municipal Tax Exemptions
Agricultural R&D businesses may receive exemptions from municipal license taxes on research revenues.
Innovation Support
The designation supports agricultural innovation that can benefit Puerto Rico's agricultural sector and create intellectual property.
Research Infrastructure
Agricultural R&D operations benefit from Puerto Rico's climate diversity and agricultural conditions suitable for research.
Requirements & Obligations
Business Structure and Registration
Agricultural R&D operations must establish appropriate legal structures and register with authorities.
Agricultural Research Activities
Activities must constitute genuine agricultural research including crop development, agricultural science, farming technology research, or related R&D. Research must be conducted in Puerto Rico.
Research Facilities
Operations must maintain appropriate research facilities including laboratories, test plots, greenhouses, or research infrastructure.
Employment Requirements
Agricultural R&D operations must employ researchers, technicians, and support staff who are Puerto Rico residents.
Research Output
Operations should produce research results, innovations, or intellectual property advancing agricultural knowledge.
Compliance and Reporting
Annual compliance reports must document research activities, employment, revenues, and research outputs.
How to Apply
The application process for Agricultural R&D incentives typically requires four (4) to eight (8) months.
The process begins with research planning. Organizations should define research programs, assess Puerto Rico's suitability for agricultural research, and plan facilities and capabilities.
During planning, organizations establish entities, secure facilities or land for research, and recruit research staff.
Applications include research program descriptions, facility plans, researcher credentials, financial projections, and employment plans.
Review evaluates research viability and agricultural innovation potential. Review typically takes sixty (60) to ninety (90) days.
Upon approval, decrees specify terms and research obligations.
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.
Ready to Get Started?
Let our AI analyze your business profile and instantly identify all incentives you qualify for across every Act 60 chapter.
