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Fruits/Vegetables/Seeds/etc.
Tax incentive for cultivation of fruits, vegetables, seeds, and related crops in Puerto Rico, supporting crop production.
10 min
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Section Code:
2081.01(a)(2)(i)
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Purpose:
Agroindustry — 2081.01(a)(2)(i)
Overview
The Fruits/Vegetables/Seeds designation under Section 2081.01(a)(2)(i) of Act 60-2019, as amended, provides preferential tax treatment specifically for cultivation of fruits, vegetables, seeds, and related crops in Puerto Rico. This designation supports crop production and fresh produce farming.
Qualifying crop producers may receive reduced corporate income tax rates, property tax exemptions on agricultural land and equipment, and municipal tax relief. The program attracts farmers and agricultural businesses focused on produce cultivation.
The key distinction of this designation is its specific focus on fruits, vegetables, seeds, and related crops rather than other agricultural products. This category addresses fresh produce and crop production.
Puerto Rico's climate supports year-round produce cultivation. The incentive encourages crop production that can increase local food availability and agricultural employment.
Key Benefits
Reduced Corporate Income Tax Rate
Crop producers may receive reduced corporate income tax rates on income from produce cultivation.
Property Tax Exemptions
Producers receive exemptions from property taxes on agricultural land, buildings, and farming equipment used for crop production.
Municipal Tax Exemptions
Crop farming operations may receive exemptions from municipal license taxes.
Fresh Produce Production
Crop cultivation contributes to local fresh food production and food security.
Agricultural Employment
Crop farming creates agricultural employment opportunities.
Requirements & Obligations
Crop Production
Businesses must cultivate fruits, vegetables, seeds, or related crops in Puerto Rico.
Agricultural Land
Crop production must occur on appropriate agricultural land in Puerto Rico.
Farming Operations
Producers must conduct genuine farming operations including planting, cultivation, and harvesting.
Environmental Compliance
Crop farming must comply with agricultural regulations and sustainable practices.
Employment
Crop producers must employ Puerto Rico residents in farming operations.
Reporting
Annual reports document crop production, revenues, and employment.
How to Apply
The application process typically requires four (4) to eight (8) months.
Producers begin with crop planning and land assessment. Applications include crop plans, land information, and financial projections.
Review evaluates farming viability and production potential.
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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