Puerto Rico offers tax credits and incentives to local and foreign companies that produce renewable energy for consumption in the territory or manufacture equipment to generate renewable energy. Eligible companies can have a fixed income tax rate as low as 4% for 15 years, obtain tax credits equal to 50% of efficient energy use and energy generation equipment and machinery cost, obtain tax credits up to 50% of qualified research and development expenses, and a real and personal property tax exemption up to 90% for 15 years. Additional tax credits are available for the purchase of Puerto Rico manufactured products, locating in low industrial development zones, and other conditions.
