Our team includes CPAs and attorneys with prior government experience in economic development and treasury matters, including business retention and attraction negotiations, doing business in Puerto Rico, and presenting the Island as an ideal investment destination. Our Tax Department makes comprehensive assessments of available benefits under the Puerto Rico incentives platform and related eligibility analyses; prepare tax decree applications, tax credit reports, and economic incentives proposals for clients; conduct pre-filing consultations as needed and complete required filings; negotiate machinery and equipment, job creation and infrastructure incentives agreements, and submittal of applicable expense evidence; assist with exempt annual reports and other contractual compliance obligations for grantees; and negotiate and monetize tax credits for clients in multiple economic sectors, among other matters.
We have extensive experience on the tax exemption, tax credits, and economic incentives field, assisting niche manufacturers, bio-pharma, and tech clients, key suppliers, energy ventures, specialized export service providers, R&D, tourism, film, and other innovative operations to maximize available incentives to strengthen local operations. Our attorneys are frequent speakers and moderators at conventions, seminars and summits organized by the principal local trade associations, professional associations, economic development initiatives, and technology incubators, and regular collaborators with government, industry, and academia to showcase Puerto Rico as a destination for investment.
Our team works to maximize the tax benefits available under Puerto Rico’s tax exemption, credits, and economic incentives program, including:
- Act No. 60 of July 1, 2019, known as the Puerto Rico Incentives Code
— Regulation No. 9248 of 2020, as amended
— Regulation No. 9465 of 2023
And predecessor acts such as:
- Act No. 20 of January 17, 2012, known as the Export Services Promotion Act
- Act No. 22 of January 17, 2012, known as the Act to Promote the Relocation of Investors
- Act No. 27 of March 4, 2011, known as the Puerto Rico Film Industry Economic Incentives Act
- Act No. 83 of July 19, 2010, known as the Green Energy Incentives Act
- Act No. 74 of July 10, 2010, known as the Tourism Development Act
- Act No. 73 of May 28 of 2008, known as the Puerto Rico Development Economic Incentives Act
The group has professional relationships with local agencies involved in the management and administration of the Puerto Rico incentives program and in the evaluation, endorsement and issuance of tax decrees, tax credits and economic incentives grants, including:
- Department of Economic Development and Commerce (DDEC)
- Office of Incentives for Businesses in Puerto Rico (formerly known as the Office of Industrial Tax Exemption)
- Puerto Rico Industrial Development Company (PRIDCO)
- Puerto Rico Treasury Department
- Puerto Rico Tourism Company
- Puerto Rico Film Commission
- Puerto Rico Department of Agriculture
We Handle
- Eligibility analyses for tax exemption, credits, and economic incentives
- Tax decree applications
- Tax credit eligibility and expense reports
- Economic incentives proposals
- Pre-filing consultations
- Filings through Incentives Portal or others, as applicable
- Negotiation of machinery and equipment, job creation and infrastructure incentives agreements
- Exempt business annual reports
- Disbursement request letters
- Contractual compliance obligations for grantees
- Negotiation and monetization of tax credits
Representative Matters and Transactions
- Represented local and multinational entities in the successful approval of new decrees, renegotiations and amendments for traditional and niche manufacturing, key supplier services and other industries.
- Assisted various local service providers to pharmaceutical multinational companies in obtaining tax exemption grants as key suppliers in the validation, quality control, project engineering and inspection industries.
- Successfully prepared application documents and obtained government approval of film tax credits for multiple live recording events and festivals held within Puerto Rico.
- Successfully prepared application documents and obtained government approval of research and development tax credits for multiple proprietary software developers operating within Puerto Rico.
- Successfully structured multiple acquisitions of distressed Puerto Rico manufacturing facilities in order to meet the legal and regulatory requirements of the industrial investment credit to manufacturing facilities in the process of shutting down Puerto Rico operations.
- Advised on multiple corporate M&As involving tax exemption grants and related notifications to the Office of Incentives.
- Successfully applied for and obtained tax exemption grants for Pioneer Activity, New PYMES, and operations in Vieques.
- Advised multiple green energy producers in the negotiation of green energy tax exemption grants and in the proper structuring of Puerto Rico energy projects in order to meet the requirements to claim the investment tax credit under the federal IRC.
