Corporate Legal Alert – DDEC Introduces “Master Grant” as Reshoring Incentive in Puerto Rico

On August 18, 2025, the Governor of Puerto Rico and the Secretary of the Department of Economic Development and Commerce (DDEC, by its Spanish acronym) announced key measures to advance the reshoring initiative aimed at promoting the relocation, establishment, and expansion of manufacturing operations on the island. Central to these efforts is the introduction of the “Master Grant” — a consolidated tax exemption decree integrating eligible activities under manufacturing, export services, and energy sectors as defined by the Puerto Rico Code of Incentives (Law No. 60-2019, as amended).

The Master Grant pilot program prioritizes businesses relocating operations from abroad or expanding existing local operations. Applications must be submitted through the Digital Incentives Portal under Chapter 6 (Manufacturing) with an attached detailed request describing additional export services and/or energy activities under Chapters 3 and/or 7. Eligible applicants include natural person or legal entity meeting the definition of an Eligible Business.

Existing companies operating under prior incentive laws may qualify for a Master Grant either by renegotiating their decree—committing to increase employment or operational capacity by at least 25%—or by applying as a Successor Manufacturing Business, maintaining employment levels exceeding 25% above the predecessor’s average over the last three years.

This streamlined tool aims to accelerate processing times and enhance Puerto Rico’s competitiveness in attracting new investments and expansions. The provisions are effective immediately as of August 28, 2025.

For more details or personalized assistance, please contact us directly. Our team stands ready to guide you through the Master Grant application process and address any specific questions regarding eligibility and program requirements.

Our Commercial and Corporate Practice at Estrella LLC is equipped to guide you through these changes, ensuring that your operations remain both legal and sustainable.

Read the full press release HERE

For more information, or to learn how your company can take advantage of this opportunity, contact our team at corporate@estrellallc.com.