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Dairy Producers/Processors/Sterilizers
Tax incentive for dairy production, processing, and sterilization operations supporting Puerto Rico's dairy industry.
7 min
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Section Code:
2081.01(a)(2)(v)
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Purpose:
Agroindustry — 2081.01(a)(2)(v)
Overview
The Dairy Producers/Processors/Sterilizers designation under Section 2081.01(a)(2)(v) of Act 60-2019, as amended, provides preferential tax treatment for dairy production, processing, and sterilization operations in Puerto Rico. This designation supports the dairy industry including milk production, dairy processing, and dairy product manufacturing.
Qualifying dairy operators may receive reduced corporate income tax rates, property tax exemptions on dairy facilities and equipment, and municipal tax relief. The program attracts dairy farmers, milk processors, dairy product manufacturers, and dairy sterilization operations.
The key distinction is its specific focus on dairy operations rather than general agriculture or food processing. Dairy operations produce milk, process dairy products, or provide dairy sterilization services.
Key Benefits
Reduced Corporate Income Tax Rate
Dairy operators may receive reduced rates on income from dairy operations.
Property Tax Exemptions
Dairy facilities, processing equipment, refrigeration, and dairy infrastructure may receive property tax exemptions.
Municipal Tax Relief
Dairy operators may receive exemptions from municipal license taxes.
Food Security Contribution
Dairy operations support local food production and reduce dependence on imported dairy products.
Requirements & Obligations
Dairy Operations Requirements
Operations must involve genuine dairy production, processing, or sterilization including milk production, dairy product manufacturing, or dairy services.
Health and Safety Compliance
Strict compliance with dairy industry health regulations, food safety standards, and sanitation requirements is required.
Facility Standards
Dairy facilities must meet appropriate standards for dairy operations including refrigeration, sanitation, and processing capabilities.
Employment
Dairy operations must employ Puerto Rico residents.
Reporting
Annual reports document dairy production, processing volumes, revenues, and employment.
How to Apply
Applications typically require six (6) to twelve (12) months. Applications include dairy operation descriptions, facility plans, health and safety programs, and financial projections. Upon approval, operators complete facility setup and commence dairy operations.
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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