2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART I - Industrial Incentives (§§ 10001 — 10052) › Chapter 901 - Puerto Rico Industrial Incentive Act of 1954 (§§ 10001 — 10011) › § 10007 - Eligibility of previously exempted business

No business which has enjoyed or is enjoying tax exemption under Act No. 184 of the Legislature of Puerto Rico, approved May 13, 1948, as amended, shall be entitled or shall otherwise be eligible for tax exemption under §§ 10001—10011 of this title, except that:
(a) If such a business shall have enjoyed less than ten (10) years of complete tax exemption under Act 184 prior to the termination of that act, it may elect to be exempt under §§ 10001—10011 of this title if eligible hereunder; but in computing the length of the exemptions provided by §§ 10001 and 10003 of this title, there shall be subtracted the period for which the enterprise enjoyed exemption under Act 184 since the day when it started operations as certified to by the Economic Development Administration or, where appropriate, from the date of the filing of the tax exemption application. Provided, however, That the Governor shall refuse any petition for conversion of tax exemption as herein provided, in all cases in which he finds that a determination of eligibility is not justified in a new application for tax exemption for the same product, filed under the provisions of § 10001(d)(1) of this title.
In every case of a transfer of a tax-exemption grant made under the provisions of Act No. 184 that has been approved between January 1, 1954, and June 28, 1956, as to which the Governor shall find that the facts presented would have justified his exercising favorably his discretion under the provisions of Act No. 9, approved April 13, 1956, amending § 10008 of this title, there shall be deducted only the periods for which the grantee would have enjoyed the exemption from the date of the approval by the Governor of the transfer of the tax-exemption grant.
(b) Any business exempted under Act 184 of 1948 or §§ 10001—10011 of this title shall be entitled to the benefits provided by §§ 10001—10011 of this title with respect to an eligible business which produces or proposes to produce a manufactured product separate and distinct from the one being produced by such exempted business, provided a separate plant is established with all the machinery and equipment required for an efficient operation but additional to the one used in any other operation that has enjoyed or is enjoying tax exemption and with a separate and independent accounting system therefor. Whether or not such separate plant has been established shall be determined in the grant of tax exemption. However, this rule shall not be interpreted to prevent the utilization by an exempted business of property or other facilities of or used by another business previously exempted when the value of such property or facilities as determined by the Department of the Treasury of Puerto Rico does not represent, in the judgment of the Governor, a substantial part of one of the businesses in question.
History —Dec. 15, 1953, No. 6, p. 12, § 7; June 28, 1956, No. 105, p. 786, § 4; June 22, 1957, No. 85, p. 419.