P.R. Laws tit. 13, § 30132
(a) Allowance. — In the case of a bona fide farmer, duly certified as such by the Secretary of Agriculture, there shall be allowed a deduction of ninety percent (90%) of the farmer’s net income from the agricultural business declared in the corresponding income tax return filed within the term prescribed by this part.
(b) Definitions. — For purposes of this section:
(1) Bona fide farmer. — The term “bona fide farmer” means any natural or juridical person that during the taxable year for which he/she claims the deduction provided in this section, holds a certificate in effect issued by the Secretary of Agriculture certifying that during said year he/she was engaged in the conduct of an agricultural business, as defined in clause (2), and derives fifty percent (50%) or more of his/her gross income from an agricultural business, as an operator, owner, or lessee, as declared in his/her income tax return.
(2) Agricultural business. — The term “agricultural business” means the operation of one or more of the following businesses:
(A) The tilling and/or cultivation of the land for the production of fruit, vegetables, spices for seasoning, and all kinds of food for humans or animals;
(B) the breeding of animals for the production of meat, milk, or eggs;
(C) the breeding of purebred race horses;
(D) agroindustrial or agropecuary operations; operations engaged in the packing, crating or classifying of Puerto Rican agricultural products which are part of the same agricultural business;
(E) seaculture, commercial fishing and aquaculture;
(F) the commercial production of flowers and ornamental plants for the local market and for export;
(G) the cultivation of vegetables by using hydroponic methods, the sheds and other equipment used for these purposes;
(H) the processing of grains by associations of bona fide farmers of grains for the consumption of the livestock industry, and
(I) the breeding of Puerto Rican pure paso fino horses.
(c) Beginning of the partial exemption period. — The partial exemption period during which the deduction provided by this section can be used shall begin with the taxable year for which the Secretary is notified of the taxpayer’s intent to avail him/herself of the benefits thereof. Said notice shall be given at the time the corresponding income tax return is filed, and it shall be a part thereof.
(d) Expenses or losses deduction. — The deduction for expenses or losses incurred in the farming business shall be subject to the provisions of § 30419 of this title.
History —Jan. 31, 2011, No. 1, § 1033.12, retroactive to Jan. 1, 2011.