Purchase Technology and Get Tax Credits
As of December 31, 2001, local businesses in Puerto Rico can claim tax credits according to their purchasing of technology products or services developed by local companies. The tax credit allowed will be 10% of the total cost of the product so long as the tax credit does not surpass 25% of the taxes owed.
In the new era of manufacturing, where technology products come in hard and soft formats, the law covers both. The key question in defining if a service is a product is if this service can be easily resold or exported.
This initiative is covered in the 1040D and 1040E ammendments to Law 120 of the Puerto Rico Tax Code.