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Animal Raising
Tax incentive for livestock and animal raising operations in Puerto Rico, supporting meat, poultry, and animal production.
10 min
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Section Code:
2081.01(a)(2)(ii)
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Purpose:
Agroindustry — 2081.01(a)(2)(ii)
Overview
The Animal Raising designation under Section 2081.01(a)(2)(ii) of Act 60-2019, as amended, provides preferential tax treatment for livestock and animal raising operations in Puerto Rico. This designation supports meat production, poultry farming, and livestock operations.
Qualifying animal raising operations may receive reduced corporate income tax rates, property tax exemptions on agricultural facilities and equipment, and municipal tax relief. The program attracts livestock farmers, poultry producers, and animal agriculture businesses.
The key distinction of this designation is its focus on animal raising and livestock production rather than crop cultivation. Animal agriculture includes cattle, poultry, swine, and other livestock raised for meat, eggs, or dairy.
Puerto Rico's agricultural sector includes animal production. The incentive supports livestock operations that can increase local meat and protein production.
Key Benefits
Reduced Corporate Income Tax Rate
Animal raising operations may receive reduced corporate income tax rates on income from livestock production.
Property Tax Exemptions
Operations receive exemptions from property taxes on agricultural land, animal housing, equipment, and livestock infrastructure.
Municipal Tax Exemptions
Animal agriculture businesses may receive exemptions from municipal license taxes.
Protein Production
Livestock operations contribute to local meat, poultry, and protein production.
Rural Employment
Animal raising creates agricultural employment in rural areas.
Requirements & Obligations
Animal Raising Operations
Businesses must raise livestock or poultry in Puerto Rico for meat, eggs, or other animal products.
Agricultural Facilities
Animal operations must maintain appropriate facilities for animal housing and care.
Animal Welfare and Health
Livestock operations must comply with animal welfare standards and agricultural regulations.
Environmental Compliance
Animal agriculture must comply with environmental regulations for waste management and emissions.
Employment
Livestock operations must employ Puerto Rico residents.
Reporting
Annual reports document livestock production, revenues, and employment.
How to Apply
The application process typically requires four (4) to eight (8) months.
Producers begin with livestock planning and facility assessment. Applications include livestock plans, facility information, and financial projections.
Review evaluates livestock operation viability.
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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