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Racehorse/Paso Fino/Other Horses
Tax incentive for horse breeding and raising operations in Puerto Rico, including racehorses, Paso Fino horses, and other equine activities.
10 min
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Section Code:
2081.01(a)(2)(iii)
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Purpose:
Agroindustry — 2081.01(a)(2)(iii)
Overview
The Racehorse/Paso Fino/Other Horses designation under Section 2081.01(a)(2)(iii) of Act 60-2019, as amended, provides preferential tax treatment for horse breeding, raising, and training operations in Puerto Rico. This designation supports equine industry including racing and breed preservation.
Qualifying equine operations may receive reduced corporate income tax rates, property tax exemptions on facilities and land, and municipal tax relief. The program attracts horse breeders, training operations, and equine businesses.
The key distinction of this designation is its specific focus on horses and equine activities. Puerto Rico has equestrian traditions including Paso Fino horse breeding and horse racing.
The incentive supports equine industry including breed preservation, training, and racing activities that contribute to agricultural diversity and cultural heritage.
Key Benefits
Reduced Corporate Income Tax Rate
Horse operations may receive reduced corporate income tax rates on income from equine activities.
Property Tax Exemptions
Operations receive exemptions from property taxes on equine facilities, stables, land, and equipment.
Municipal Tax Exemptions
Equine businesses may receive exemptions from municipal license taxes.
Breed Preservation
The designation supports preservation of Paso Fino and other horse breeds.
Cultural Heritage
Equine activities contribute to Puerto Rico's agricultural and cultural traditions.
Requirements & Obligations
Equine Operations
Businesses must breed, raise, or train horses in Puerto Rico.
Facility Requirements
Equine operations must maintain appropriate facilities for horse care and training.
Animal Care Standards
Horse operations must comply with animal welfare standards and equine care requirements.
Registration
Horses may need to be registered with appropriate breed registries or racing authorities.
Employment
Equine operations must employ Puerto Rico residents.
Reporting
Annual reports document equine operations and activities.
How to Apply
The application process typically requires four (4) to eight (8) months.
Operators begin with equine business planning and facility assessment. Applications include breeding or training plans, facility information, and financial projections.
Review evaluates equine 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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