Thanks to recently enacted legislation by the Puerto Rican government that provides up to 50 percent tax credits for certain medical firms, shipments of medical devices are booming on the island. This added incentive goes along with Puerto Rico being considered a foreign jurisdiction so businesses don’t pay federal taxes.
Currently more than $5 billion worth of medical shipments leave Puerto Rico annually. Baxter employs 4,000 people and medical supply giant Medtronic just announced a $5 million investment in Puerto Rico to build a second manufacturing plant.
Everything from bandages to pace makers to scalpels are made on the island. It is estimated that thirteen of the top 15 medical device companies have a presence in Puerto Rico. The medical industry contributes 10 percent of all the jobs on the island.