Published August 27, 2012
By Jeff Cobb
Puerto Rico’s main revenue source is taxation of its people. Excise taxes are presently levied on items including lottery winnings, cigarettes, liquor, hotel rooms, cement, imports and vehicles.
That notwithstanding, Puerto Rico wants to cut combustible fuel usage, and to encourage its citizens to do so, has just added to existing excise tax breaks for the purchase of a hybrid or all-electric vehicle.
The new law signed by Gov. Luis G. Fortuno grants a rebate on the excise tax that’s a good deal for hybrids, and a better one for less fuel-consuming electric vehicles (EVs).
Under the new rules, previous excise tax refunds of up to $2,000 have been increased. For a one-year period beginning July 1, up to 65 percent of excise tax reimbursement is being offered for hybrids – up to a maximum of $8,000 – and through 2016 for EVs a 100-percent excise tax exemption is offered.
The hybrid offer beginning July 1 is reduced progressively for subsequent year. After July 1, 2013, the hybrid excise tax break is cut to 50-percent maximum, not to exceed $6,000 for the period through July 1, 2014. Following this, the excise tax break in successive years is cut to a maximum of 40 percent, not to exceed $4,000, and then a maximum of 20 percent, not to exceed $2,000.
tax-news.com
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