Act 73 - Manufacturing Industry Tax Incentives

Manufacturing distribution business

Controlling costs is a constant challenge for manufacturers. The potential to save money on taxes with the incentives offered by Puerto Rico under Act 73 has made doing business there irresistible to many types of manufacturing companies. When companies choose to relocate, the tax savings make production more economical and they can pass these savings on to customers, giving them an edge among the competition.

At Delerme CPA, LLC, we're highly experienced in Puerto Rico tax incentive planning for manufacturing companies. We can show you how to maximize the number of tax credits and exemptions your business qualifies for when you set up operations in Puerto Rico.

Act 73 Tax Incentives

Our strategies will position your business to receive all of the appropriate tax incentives offered to the manufacturing industry under Act 73. Some of the tax benefits include:

  • Up to 50% tax credit on purchases of products manufactured or recycled locally
  • 50% tax credit on eligible research and development activities
  • 25% tax credit on purchases of products that are manufactured in Puerto Rico
  • 4% income tax for industrial development
  • 100% tax exemption on excise taxes on certain materials and equipment
  • 100% tax exemption on sales and use taxes on certain materials and equipment
  • Tax deductions on investments from structures, machinery, and equipment

Who's Eligible for Act 73?

The tax incentives offered under Act 73 benefits food processing companies and other manufacturing businesses producing products like consumer goods, apparel, biotech materials, pharmaceuticals, and medical devices.

Call us now at (404) 445-8095 or request your free consultation online to learn more. Our CPA firm has offices in the United States and Puerto Rico.