Economic Incentives & Tax Credits
High impact incentives for small businesses in Puerto Rico
For more than 60 years, Puerto Rico has used its unique territorial framework to enact numerous tax incentives programs that have served as its main economic development tool. Puerto Rico is a territory of the United States, and the majority of US laws apply in Puerto Rico. However, Puerto Rico also possesses the authority to establish its own tax system. An Eligible Business must file an application to request and obtain a Decree to enjoy the tax incentives offered by the PR-IC. The application is electronically filed in the Puerto Rico government’s online platform. Manufacturing, hospitality, creative industries, financial institutions (banks, insurers, private equity), energy, are all focus sectors for government incentives.
Top tax incentive programs for small and medium-sized businesses in Puerto Rico
Puerto Rico Manufacturing Incentives
Eligible manufacturing businesses benefit from: - 4% income contribution rate - 75% exemption on property taxes - 50% exemption in municipal contributions - 100% exemption on taxes on raw materials, machinery and equipment,& distribution of dividends
Puerto Rico Infrastructure Incentive
Business dedicated to the construction of homes of social interest, for the elderly or assisted living and historic areas are eligible to receive tax incentives.
Puerto Rico Energy Support Program
Small and medium-sized businesses that qualify, are eligible to receive up to $25,000 to install green energy systems in their businesses.
Puerto Rico Opportunity Zones
Tax exemptions and credits for development of real property for sale or lease, located in an Opportunity Zone of Puerto Rico.
Basic Incentive for Job Creation & Location
$250- $400 per new employee for qualified businesses.
Tax Exemption For the Export of Services
If your export services company is conducting its activities inside Puerto Rico, it may be eligible for substantial benefits that apply to income received from customers outside of Puerto Rico.
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Subcity empowers small businesses, CPAs, and finance professionals to identify and apply for economic incentives and tax credits. Each year, over $100 billion is allocated for incentives across local, state, and federal programs in the U.S. Unfortunately, a significant portion of this money goes unclaimed or to large corporations with teams of tax attorneys and legal experts.
Subcity utilizes a comprehensive database of incentives to connect small businesses with the programs that were designed to help them create jobs, invest in their communities, and grow their business. Subcity charges a 10-20% fee for the programs they successfully secure, ensuring zero risk for clients as payment is contingent on results. Subcity is on a mission to democratize access to capital for America’s small businesses and has already delivered tens of millions of dollars in tax incentives for clients across the country.