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Ornamental Flowers
Tax incentive for ornamental flower and decorative plant production supporting Puerto Rico's floriculture industry.
7 min
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Section Code:
2081.01(a)(2)(viii)
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Purpose:
Agroindustry — 2081.01(a)(2)(viii)
Overview
The Ornamental Flowers designation under Section 2081.01(a)(2)(viii) of Act 60-2019, as amended, provides preferential tax treatment for ornamental flower cultivation and production in Puerto Rico. This designation supports the floriculture industry including cut flowers, potted plants, and ornamental plant production.
Qualifying flower producers may receive reduced corporate income tax rates, property tax exemptions on growing facilities and equipment, and municipal tax relief. The program attracts floriculture operations, greenhouse growers, and ornamental plant producers.
The key distinction is its focus on ornamental plants and flowers rather than food crops or general horticulture. Ornamental flower operations produce decorative plants for landscaping, floral arrangements, and ornamental purposes.
Key Benefits
Reduced Corporate Income Tax Rate
Flower producers may receive reduced rates on income from ornamental plant sales.
Property Tax Exemptions
Greenhouses, growing facilities, irrigation systems, and floriculture equipment may receive property tax exemptions.
Municipal Tax Relief
Flower operations may receive exemptions from municipal license taxes.
Floriculture Industry Support
The designation supports Puerto Rico's ornamental plant industry and export opportunities.
Requirements & Obligations
Ornamental Production Requirements
Operations must produce ornamental flowers, potted plants, or decorative plants rather than food crops.
Growing Facilities
Operations must maintain appropriate growing facilities including greenhouses, shade houses, or field production systems.
Plant Quality
Producers must maintain plant health standards and quality appropriate to ornamental markets.
Employment
Flower operations must employ Puerto Rico residents.
Reporting
Annual reports document production volumes, revenues, and employment.
How to Apply
Applications typically require four (4) to eight (8) months. Applications include production descriptions, facility plans, growing programs, and financial projections. Upon approval, operators commence ornamental production.
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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