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PS 402

Para enmendar la Sección 4030.17 de la Ley 1-2011, según enmendada, conocida como “Código de Rentas Internas para un Nuevo Puerto Rico”, a los fines de eximir del impuesto sobre ventas y uso, los equipos o máquinas dedicadas a la generación de energía eléctrica por cualquier medio, incluyendo, pero sin limitarse a aquellos propulsados mediante energía eólica, solar, o mediante combustión interna con una potencia de hasta 20,000 kilovatios, y que sean utilizados para producir energía eléctrica, incluyendo sus accesorios y piezas, siempre que sean necesarios para que éstos puedan cumplir con tal propósito; y para otros fines relacionados

2025-2028 Session

Exempts renewable and internal combustion electrical generation equipment (up to 20MW) from Puerto Rico sales tax to reduce energy costs and incentivize power production infrastructure.

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Bill Summary · PS 402

Legislative bill overview

Bill PS 402 would amend Puerto Rico's Internal Revenue Code to exempt sales and use taxes on electrical generation equipment and machinery (up to 20,000 kilowatts capacity) powered by wind, solar, or internal combustion, along with their necessary accessories and parts. This tax exemption would apply to equipment used specifically for electricity production.

Why is this important

Puerto Rico faces high electricity costs and energy dependency, making renewable energy adoption economically challenging for businesses and residents. Tax exemptions on generation equipment could reduce installation costs and incentivize renewable energy infrastructure development, potentially lowering long-term energy expenses and supporting the island's energy transition goals.

Potential points of contention

  • Fiscal impact: The tax exemption reduces government revenue from sales taxes without a specified offsetting mechanism or sunset provision, raising sustainability concerns
  • Scope definition: The 20,000 kilowatt threshold and broad equipment definitions ("accessories and pieces") could be subject to interpretation disputes and potential revenue loss beyond legislative intent
  • Equity concerns: Benefits may disproportionately favor businesses and higher-income households who can afford generation equipment installation, potentially widening economic disparities

Compiled from official sources — confirm details with the bill’s official record.

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