The 2008 Economic Incentives for the Development of Puerto Rico Act (EIA) provides a wide array of tax credits and incentives that enable local and foreign companies dedicated to certain business activities to operate within Puerto Rico.

Businesses dedicated to the production of energy for consumption in Puerto Rico through the use of renewable sources are eligible companies under the EIA of 2008. In addition, businesses devoted to assembling equipment used to generate energy from renewable resources are eligible. The main economic incentives include:

• 4% fixed income tax rate for 15 years.
• Tax credit equal to 50% of the cost of "machinery and equipment for the generation and efficient use of energy". (Note: according to the Puerto Rico Office of Industrial Tax Exemption, this particular credit is intended for use by companies engaged in manufacturing that want to produce their own power, not companies that produce energy for domestic consumption). Energy producers can apply for a similar credit through the Green Energy Fund program.
• Up to 50% credit of qualified research and development expenses.
• 90% exemption from real and personal property taxes for 15 years.

There are additional tax credits available, including tax credits for locating in a "low industrial development zone" or for purchasing products manufactured in Puerto Rico, among others.

To apply for the benefits under the EIA, eligible companies must complete an application (posted on the Office of Industrial Tax Exemption) and submit required documentation to the Office of Industrial Tax Exemption, whose Director will initiate required inter agency communications, prepare a "Grant Project" for the Secretary of Development to review and subsequently determine to either grant or refuse the application.

The 2010 Puerto Rico Green Energy Incentives Act (GEI, Act No. 83) provides financial incentives through a special fund called Green Energy Fund. As a result, as of June 30, 2010 eligible "green energy" businesses will have to choose between the new incentives provided by the GEI or those provided via the EIA as described above. Businesses are not permitted to both.