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Witness tells legislature Act 22 helped attract serial entrepreneurs; cites Freewind Energy factory in Aguas Buenas
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Summary
David, a representative of an Act 20/22 society, testified that Puerto Rico—s tax-incentive laws have brought serial entrepreneurs who create jobs and local ownership; he cited examples including Freewind Energy, a planned factory in Aguas Buenas, and cybersecurity firm Rubidex and urged measured amendments to curb abuse while preserving benefits.
David, identifying himself as a representative of an Act 20/22 society, told an unnamed legislative hearing that Puerto Rico—s tax-incentive programs have drawn serial entrepreneurs who subsequently created businesses, jobs and local ownership.
"The more serial entrepreneurs that we can attract into the community ... the more economic activity they will create," David said, arguing that smaller entrepreneurs are likelier than single large investors to share ownership and opportunity locally.
He offered concrete examples. He described an internet-marketing business brought from California that grew to 122 employees; of those, he said, 40 are now partners in the business and "70% of them are Puerto Ricans." He also introduced Tomas Gaspar, whom he described as the inventor behind Freewind Energy, and said the company plans to locate a manufacturing facility in the municipality of Aguas Buenas with support from Puerto Rico—s economic-development agency (transcribed as "Dedeck").
"Freewind Energy is gonna locate in Aguas Buenas, and we're gonna have a factory there," David said, adding that the agency helped find and lease an abandoned factory for the operation.
David also discussed two other startups. He said Joule (transcribed in the hearing as "Jewel") is bringing senior grid engineers to Puerto Rico to work on infrastructure projects without relying on tax incentives, and that Rubidex offers cybersecurity software that infrastructure engineers reviewed positively. "Rubidex has a type of ... cyber security software that could eliminate these problems that are going on with these utilities in The United States," he said, urging that Puerto Rico should claim credit if such solutions emerge locally.
On policy, David acknowledged concerns about abuse under Act 22 and called for changes that would tie incentives more clearly to local investment and measurable economic outcomes. He recounted how the U.S. Virgin Islands and federal agencies reacted to earlier territorial incentive programs and said that targeted amendments and better publicity about Puerto Rican innovations could reduce federal pressure while preserving economic benefits.
David also flagged a separate fiscal item: he said a pending court matter about supplemental Social Security could, if a decision stands, bring roughly $2,000,000,000 a year into the island economy.
The hearing record shows no immediate vote or directive; David offered to meet with lawmakers to discuss specific amendments and additional details.
