reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 951 - Tax Credits for Investment in Housing Infrastructure (§§ 10601 — 10612) › § 10607 - Transfer of credit; change of control of the developer

(a) General rule. — The transfer of the credit obtained under this chapter, or of the shares, interest, property or any majority proprietary interest, that constitutes a change of control of the petitioner to another person, shall require the prior approval of the Secretary of Housing with the endorsement of the Secretary of the Treasury. If the transfer is made without [such] prior approval, the credit shall be null at the time the transfer occurs. Notwithstanding the above, the Secretary of Housing may approve any transfer made without his/her approval retroactively, when, in his/her judgment, the circumstances of the case merit the approval, taking into account the best interests of the Commonwealth of Puerto Rico and the purposes for the development of infrastructure of this chapter. Every application for a transfer under this section must be approved or denied within the sixty (60) days following its filing. Any application for transfer that is not approved or denied within this term shall be deemed to be approved. The denial of an application for transfer must be done in writing, and shall also itemize the grounds for which it is denied.
(b) Exceptions. — The following transfers shall be authorized without the need of the prior consent of the Secretary of Housing:
(1) The transfer of the assets of a decedent to his/her estate or the transfer by legacy or inheritance.
(2) The transfer of the shares or stock of a petitioner when the transfer does not directly or indirectly result in a change of control of the petitioner.
(3) The pledge or mortgage granted in the regular course of business with the purpose of providing collateral of a bona fide debt. Any transfer of control, title or interest by virtue of this contract shall be subject to the provisions of subsection (a) of this section.
(4) The transfer by legal action, by order of a court or a bankruptcy judge to a trustee. Any subsequent transfer to a third party who is not the same debtor or former bankrupt, shall be subject to the provisions of subsection (a) of this section.
(5) The transfer of the tax credit from the combine to its members or the legatees or heirs of the latter.
(c) Notification. — Every transfer included in the exceptions of subsection (b) of this section, shall be reported to the Secretary of Housing and the Secretary of the Treasury by the petitioner within thirty (30) days from its conclusion.
History —Aug. 10, 2001, No. 98, § 9; Aug. 6, 2008, No. 171, § 6.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 951 - Tax Credits for Investment in Housing Infrastructure (§§ 10601 — 10612) › § 10608 - Denial, revocation, and limitation of the benefits of this chapter

(a) Denial and reconsideration. — The Secretary of Housing may deny any application filed under this chapter when he/she determines in his sound discretion that it is not needed, taking into consideration the facts presented, the nature, condition and extraordinary infrastructure investment to be made, the infrastructure needs in the area where the housing project is to be developed, as well as the location of the project, its environmental impact and other factors that, in his/her judgment, are relevant.
Once the petitioner has been notified of a denial by virtue of the provisions of this section, he/she may request a first and only reconsideration from the Secretary of Housing, pursuant to the terms and conditions established by the regulations that the Department of Housing promulgates for these purposes, pursuant to the provisions of §§ 2101 et seq. of Title 3, as amended. In reconsidering the application, the Secretary of Housing may consider any other term or condition that does not exceed the benefits provided by this chapter, and which [in] his sound judgment, is needed to ensure the best interests of Puerto Rico, and the infrastructure development purposes of this chapter.
(b) Grounds and procedures for revocation; recovery of credit. — The Secretary of Housing may revoke the credits granted to the petitioner under this chapter, upon the recommendation of the Secretary of Housing, after allowing the petitioner to appear and be heard. The Secretary of Housing may determine that this revocation shall be effective from the date the petitioner is found guilty of the violation on which the determination is grounded, in the following cases:
(1) When the petitioner fails to comply with any of the obligations that have been imposed on him/her by this chapter by the regulations promulgated hereunder, or by the terms found in his/her certificate of approval, as the case may be.
(2) When the petitioner does not complete the infrastructure work within the term of three (3) years from the date the approval of credit certificate is issued.
(3) When the benefits of this chapter have been obtained through false or fraudulent representations with regard to the description of the housing project and infrastructure to be constructed, or the description or estimate of the proportion or capacity of the infrastructure that will benefit other persons, or for any other fact or circumstance that, in whole or in part, motivated the approval of the application for credits.
When the credits granted under this chapter are revoked, the petitioner shall owe the amount of the revoked credits plus any applicable interest, surcharges and penalties. These amounts shall be owed as income taxes by the petitioner.
History —Aug. 10, 2001, No. 98, § 10.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 951 - Tax Credits for Investment in Housing Infrastructure (§§ 10601 — 10612) › § 10609 - Administration; evaluation by the Department of the Treasury

Except when it is otherwise provided in this chapter, the Secretary of Housing shall be in charge of the administration of this chapter, and shall exercise the powers, perform the duties, and shall comply with the obligations imposed by this chapter. The duties established in this chapter, related to income taxes, shall be administered by the Secretary of the Treasury.
History —Aug. 10, 2001, No. 98, § 11.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 951 - Tax Credits for Investment in Housing Infrastructure (§§ 10601 — 10612) › § 10610 - Penalties

In addition to what is provided in § 10608 of this title, the Secretary of Housing may impose an administrative fine of not less than five thousand dollars ($5,000.00), nor more than one hundred thousand dollars, ($100,000.00) for each infraction, on any person who violates any of the provisions of this chapter or the regulations promulgated thereunder.
History —Aug. 10, 2001, No. 98, § 12.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 951 - Tax Credits for Investment in Housing Infrastructure (§§ 10601 — 10612) › § 10611 - Regulations

The Secretary of Housing, together with the Secretary of the Treasury, shall promulgate the necessary regulations to enforce compliance and implement the provisions and purposes of this chapter.
History —Aug. 10, 2001, No. 98, § 13.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 951 - Tax Credits for Investment in Housing Infrastructure (§§ 10601 — 10612) › § 10612 - Administrative decisions shall be final

Any petitioner who is adversely affected or injured by any action of the Secretary of Housing denying a duly-filed application for the benefits of this chapter, or revoking and canceling a credit approval certificate pursuant to the provisions of this chapter, once the remedy provided in § 10608 of this title is exhausted, shall be entitled to judicial review thereof, pursuant to the terms and conditions established by the regulations to be promulgated by the Secretary of Housing to these effects, pursuant to the provisions of §§ 2101 et seq. of Title 3, as amended. During the handling of the judicial review, the Secretary of Housing, when in his judgment, the course of justice requires it, is authorized to postpone the effective date of any action taken under those conditions that are required, and to the extent they are necessary to prevent irreparable harm. When said postponement is requested and it is denied, the court before which revision is requested, may decree any procedure that is necessary and appropriate to postpone the effective date of any action taken by the Secretary of Housing, to preserve the status or the rights of the parties, until the termination of the revision procedures, upon the posting of a fine to the order of the Secretary of Housing, subject to his/her approval, and in the amount of the contributions owed, plus interests, penalties and interest computed for the term of one year at the prevailing legal rate.
History —Aug. 10, 2001, No. 98, § 14.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 952 - Tax Credits for New Construction or Housing Rehabilitation (§§ 10621 — 10636) › § 10622 - Credit for investment in construction or rehabilitation of rental housing for low or moderate income families

(a) General rule. — Subject to the provisions of this chapter and the regulations promulgated thereunder and with the exception of the provisions of subsection (b) of this section, every owner of a rental housing project may qualify for a tax credit of fifty cents ($.50) for each dollar ($1.00) of eligible investment used in the new construction or substantial rehabilitation of housing units to be rented to low or moderate income families.
(b) Other tax benefits. — This credit shall not apply nor be available to any owner whose housing project receives or has received any other tax benefit under other laws or regulations of the Commonwealth of Puerto Rico that may use, or has used them against the investment in new construction or substantial rehabilitation of rental housing units for low or moderate income families requested under this chapter, with the exception of §§ 891 et seq. of Title 17, known as the “Public and Private Sector Co-Partnership for the New Housing Operation Act”. The tax credits granted under this chapter may be combined with any other tax benefit pursuant to the laws and regulations of programs of the Government of the United States of America, including the Low Income Housing Tax Credit Program under Section 42 of the United States Internal Revenue Code.
In the case of a project for which tax benefits are received under the Low Income Housing Tax Credit Program, provided in Section 42 of the United States Internal Revenue Code, the amount of tax credit for every dollar of eligible investment shall be that which is necessary to cover the project financing gap, up to a maximum of ninety percent (90%) of the total eligible cost.
The Executive Director shall specify, through regulations, the terms under which the provisions of this chapter may be combined with the provisions of other tax benefit programs for low or moderate income housing.
History —Oct. 4, 2001, No. 140, § 3; Aug. 13, 2008, No. 261, § 2.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 952 - Tax Credits for New Construction or Housing Rehabilitation (§§ 10621 — 10636) › § 10625 - Term for construction or rehabilitation

The new construction or rehabilitation of low cost rental housing units for rent to low or moderate income families must be fully completed in a maximum term of three (3) years and two (2) years, respectively, counting from the date the Executive Director issues the qualification certificate. The Executive Director may, at his full discretion, modify or extend the term provided in this section, if the interests of the Commonwealth of Puerto Rico do so justify it. The Executive Director may again collect the charge or handling fee provided in § 10629 of this title, for any request for extension of the term provided above.
History —Oct. 4, 2001, No. 140, § 6.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 952 - Tax Credits for New Construction or Housing Rehabilitation (§§ 10621 — 10636) › § 10626 - Allocation, sale or transfer of credit

(a) Allocation, sale or transfer of credit. — The credit provided under this chapter may be wholly or partially allocated, sold or otherwise transferred by the owner to an acquirer only once. For the purposes of this subsection, the change of control of the owner shall not constitute a transfer of the credit provided under this chapter.
(b) Notice; approval. — An owner who has allocated, or transferred all or part of his/her credit, as well as the acquirer of the credit, shall notify the Executive Director with a copy to the Secretary of the Treasury, of the allocation, sale, or transfer of credit through a sworn statement to such effects, supported by the documents that attest to the allocation, sale or transfer. The sworn statement shall have the information that the Executive Director shall provide through the regulation promulgated to such effects. The Executive Director, once he/she verifies the validity of the allocation, sale or transfer of the credit, shall issue a certification of allocation, sale or transfer, as the case may be, which shall be included with the income tax returns of the owner and the acquirer of the credit for the year in which the allocation, sale or transfer of the credit is made. The Executive Director shall notify the Secretary of the Treasury of the certification of the allocation, sale or transfer of the credit.
(c) Tax exemption. — The money or the worth of the real property received in exchange for the credit allocated or transferred shall be exempted from taxation under the Puerto Rico Internal Revenue Code of 1994, up to a sum equal to the amount of the credit allocated, sold or transferred. The value of any real property received by the owner in exchange for the credit shall be determined in the manner that the Executive Director, together with the Secretary of the Treasury shall establish, which shall include an appraisal made by a duly licensed appraiser.
(d) Validity of credit in case of revocation. — In the event that the credit is revoked as provided in this chapter, if it had been allocated, sold or transferred to an acquirer pursuant to the provisions of this section, its validity shall not be affected. In said cases, the owner, not the acquirer, shall be responsible for the reimbursement of the credit as provided in § 10632 of this title.
History —Oct. 4, 2001, No. 140, § 7; Aug. 13, 2008, No. 261, § 5.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 952 - Tax Credits for New Construction or Housing Rehabilitation (§§ 10621 — 10636) › § 10627 - Error in computing credit

If the authority grants an owner a larger amount of credit than what could be allowed according to the eligible investment, for the new construction or substantial rehabilitation of housing units for rental to low or moderate income families, said excess shall be owed by the owner as taxable income. The Executive Director shall notify the Department of the Treasury of the excess credit as soon as he is cognizant of the error.
History —Oct. 4, 2001, No. 140, § 8.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 952 - Tax Credits for New Construction or Housing Rehabilitation (§§ 10621 — 10636) › § 10628 - Credit limit per year; availability of credit

(a) Credit limit per year. — Every taxable year, the Secretary of the Treasury shall allocate fifteen million (15,000,00[0]) dollars as the maximum amount of credit available to be distributed pursuant to this chapter; Provided, That the Secretary of the Treasury shall authorize for a particular taxable year and by petition of the Executive Director, an increase in the amount herein provided when the interest of the People of Puerto Rico so justify it. This authorization shall be obtained through legislation to be introduced to such effects.
(b) Residual of credits. — If the Authority does not grant credits in any fiscal year for the total amount allowed, it may use or pass on the residual of the credits to a following fiscal year, to a maximum of the fifty (50%) percent not granted in the previous fiscal year.
(c) Increase or reduction of the owner’s credit. — In those cases in which the owner invests more than the amount previously calculated as an eligible investment and the housing project qualifies for a larger amount of credit, the Executive Director, at his/her full discretion, may grant the same, provided that the amount of additional credit granted shall be reduced from the amount of credit available in the year it is granted. The owner shall submit all the documents, evidence and information that the Executive Director deems are necessary to be able to evaluate and certify the increase in the amount of the eligible investment, and the increase in credits.
History —Oct. 4, 2001, No. 140, § 9; Aug. 13, 2008, No. 261, § 6.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 952 - Tax Credits for New Construction or Housing Rehabilitation (§§ 10621 — 10636) › § 10629 - Application for credit; requirements; rights, application period

(a) Application.— Every petitioner shall file an application, under oath, in the central offices of the Authority with the documents and information that are required by the regulations that the Executive Director promulgates to such effects. The Executive Director shall remit a copy of the application for credit to the Secretary of the Treasury within thirty (30) days after it is filed.
(b) Requirements.— The Executive Director shall establish by regulations, the information and documents that must be included with the application for credit; Provided, however, That the following shall be included with the information and documents that the Executive Director must require with the application for credit:
(1) Location and description of the housing project, including, but not limited to the type and number of housing units to be rented to low and moderate income families and the number and description of the units to be used for other purposes;
(2) itemized list of the cost items of the new construction or substantial rehabilitation of all the housing project units, and
(3) nature of the eligible investment and financing method.
(c) Filing fees.— Every petitioner shall include a certified check or postal money order with the application for credit in the amount of five hundred (500) dollars drawn to the order of the Secretary of the Treasury, to cover the filing and handling costs of the application. The Executive Director may increase this amount from time to time, through regulations to such effects.
(d) Implementation fees.— The Executive Director may charge every owner who files a credit application under this chapter, an annual fee that consists of the amount the Executive Director determines is needed to cover the costs of implementing this chapter.
(e) Compliance fees.— The Executive Director may charge every owner to whom credit is granted under this chapter, an annual fee that shall consist of the sum that the Executive Director determines is needed to cover the cost of verification and validation of the compliance with the obligations imposed in this chapter, which in said case, shall not be greater than five hundred (500) dollars.
(f) Application period.— The Executive Director shall not accept applications for or award the incentives, credits, deductions, and other benefits described in § 10622 of this title after December 31 st, 2015.
History —Oct. 4, 2001, No. 140, § 10; Aug. 13, 2008, No. 261, § 7; Nov. 17, 2015, No. 187, § 68; Dec. 28, 2016, No. 208, § 19.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 952 - Tax Credits for New Construction or Housing Rehabilitation (§§ 10621 — 10636) › § 10633 - Reimbursement of credit

In case of noncompliance with the rental requirement, the maximum rent applicable to housing units, or any other noncompliance of any other obligations and conditions imposed by the qualification certificate, the credit certification, this chapter or by the regulations promulgated thereunder, in which the Executive Director deems meritorious, the owner shall be bound to reimburse the Department of the Treasury that portion of the credit which he/she is not entitled to use according to the year that the noncompliance occurs, according to the following table:
IF NONCOMPLIANCE REFUNDABLE OCCURS DURING THE: CREDIT First and Second years 100% Third year 90% Fourth year 80% Fifth year 70% Sixth year 60% Seventh year 50% Eighth year 40% Ninth year 30% Tenth year 20%
The reimbursement of the credit provided by this section shall be owed by the owner as taxable income; Provided, further, That it shall include any applicable interest, surcharges or penalties. In the event that the owner has not used any portion of the credit that he/she is bound to reimburse, said portion of the credit shall be cancelled.
History —Oct. 4, 2001, No. 140, § 14; Aug. 13, 2008, No. 261, § 11.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 952 - Tax Credits for New Construction or Housing Rehabilitation (§§ 10621 — 10636) › § 10634 - Administration by the Executive Director; evaluation by the Department of the Treasury

Except when otherwise provided in this chapter, the Executive Director shall be in charge of the administration of this chapter, of the evaluation of applications, of the determination of eligible investment, of the issuing of the qualification certificate and the credit certification subject to the provided in §§ 10623 and 10630 of this title and shall exercise the powers, discharge the duties, and comply with the obligations imposed by this chapter.
The duties related to income taxes established in this chapter, shall be administered by the Secretary of the Treasury.
History —Oct. 4, 2001, No. 140, § 15; Aug. 13, 2008, No. 261, § 12.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 952 - Tax Credits for New Construction or Housing Rehabilitation (§§ 10621 — 10636) › § 10635 - Penalties

The Executive Director may impose on any person who infringes any of the provisions of this chapter or the regulations promulgated hereunder, an administrative fine of not less than five thousand (5,000) dollars nor more than one hundred thousand (100,000) dollars for each infraction.
History —Oct. 4, 2001, No. 140, § 16.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 952 - Tax Credits for New Construction or Housing Rehabilitation (§§ 10621 — 10636) › § 10636 - Administrative decisions shall be final

Every owner who is adversely affected or harmed by any action of the Executive Director denying a duly-filed application for the benefits of this chapter, or revoking and canceling a credit certificate pursuant to the provisions of this chapter, once the remedy provided in § 10632 of this title has been exhausted, shall be entitled to a judicial review thereof according to the terms and conditions established by the regulations to be promulgated by the Authority to such effects, pursuant to the provisions of §§ 2101 et seq. of Title 3, as amended. During the filing of the judicial review, the Executive Director is hereby authorized, when, in his judgment, justice warrants it, to postpone the effective date of any action under those conditions that are required, and to the extent they are needed, to prevent irreparable damage. When said postponement is requested and it is denied, the court before which the review is requested, may decree any procedure that is necessary and appropriate, to postpone the effective date of any action taken by the Executive Director to preserve the status or the rights of the parties, until the termination of the revision procedures, upon furnishing bond to the order of the Secretary of the Treasury, subject to his/her approval and in the amount of the unpaid taxes, plus interest and penalties, plus interest computed for the period of one year at the prevailing legal rate.
History —Oct. 4, 2001, No. 140, § 18.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 953 - Economic Incentives Act For The Development Of Puerto Rico (§§ 10641 — 10673) › Subchapter I - Economic Incentives (§§ 10641 — 10661) › § 10641 - Statement of public policy

It shall be the public policy of the Government of Puerto Rico:
(1) To promote the adequate environment and opportunities for the development of the local industries.
(2) To offer an attractive tax proposal to high technology and high added value industries to attract direct foreign investments to be able to compete with other jurisdictions.
(3) To guarantee a relationship between the industries and the Government of Puerto Rico based on stability, reliability and credibility. All the components of our society shall offer ironclad support to this program and to the respect for and compliance with the commitments that are part of the same for the benefit of Puerto Rico.
(4) To support the initiatives of the private sector, academia, community enterprises and municipalities in order to contribute to the economic development, of Puerto Rico through innovation, research and development and investment in the necessary infrastructure for a better quality of life and the efficiency in industrial operations.
(5) To curb the high operational costs and make flexible the regulatory limitations that hinders the competitive position of Puerto Rico. For example, it is necessary to promote the revision of laws and/or regulations that limit the use of certain fuels in the manufacturing process in order to allow the industrial sector to use less expensive fuels, provided that the efficiency of the absorption process or of the control equipment does not interfere with the compliance requirements for atmospheric concentration of pollutants established by law or any other applicable requirement.
(6) To take strong action to reduce energy costs through different alternatives of renewable sources.
(7) To recognize the importance of the decentralization of the government and, in accordance with the preceding, to support the efforts that are being developed at the regional level to promote economic development and technological innovation. Said efforts constituted by the government, the entrepreneurial sector and academia, have already begun to bear fruit and it is essential to support them to ensure their contribution to the economic future of Puerto Rico.
History —May 28, 2008, No. 73, art. 1, § 1, eff. July 1, 2008.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 953 - Economic Incentives Act For The Development Of Puerto Rico (§§ 10641 — 10673) › Subchapter I - Economic Incentives (§§ 10641 — 10661) › § 10659 - Regulations

The Secretary of Development shall prepare, in consultation with the Secretary of the Treasury and the Executive Director, those regulations as necessary to render the provisions and purposes of this chapter effective. The Secretary of the Treasury shall approve regulations, in consultation with the Secretary of Development and the Executive Director, on matters concerning the granting and assignment or sale of tax credits under §§ 10645 and 10646 of this title. Said regulations shall also be subject to the provisions of §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act of the Commonwealth of Puerto Rico”. Except to the extent these are inapplicable or inconsistent with the provisions of this chapter, the regulations submitted under §§ 10101 et seq. of this title, shall continue to be in effect until new regulations are approved. The absence of any of the regulations contemplated by this chapter shall not impede the application thereof. Any regulations required or allowed under this chapter shall be submitted to the Office of the Clerk of the House of Representatives and to the Office of the Secretary of the Senate of Puerto Rico for their approval. Both Chambers shall consider such regulations within thirty (30) days as of their receipt. In the event that both Chambers fail to make a determination within the terms provided for above, the regulations shall be deemed to be approved.
History —May 28, 2008, No. 73, art. 1, § 19, eff. July 1, 2008.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 953 - Economic Incentives Act For The Development Of Puerto Rico (§§ 10641 — 10673) › Subchapter I - Economic Incentives (§§ 10641 — 10661) › § 10660 - Decrees granted under preceding acts

No new applications for exemption decrees under §§ 10101 et seq. of this title, shall be received after the date of effectiveness of this act. The preceding notwithstanding, the decrees granted thereunder or under similar preceding laws may be amended pursuant to their respective provisions. The new applications for decrees filed under said sections which have not been granted before the date of effectiveness of this act may be processed, at the option of the applicant, under the present chapter.
History —May 28, 2008, No. 73, art. 1, § 20, eff. July 1, 2008.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 953 - Economic Incentives Act For The Development Of Puerto Rico (§§ 10641 — 10673) › Subchapter I - Economic Incentives (§§ 10641 — 10661) › § 10661 - Application of the Puerto Rico Internal Revenue Code

The Puerto Rico Internal Revenue Code shall apply complimentarily with this chapter to the extent that its provisions do not contravene the provisions of this chapter.
History —May 28, 2008, No. 73, art. 1, § 21, eff. July 1, 2008.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 953 - Economic Incentives Act For The Development Of Puerto Rico (§§ 10641 — 10673) › Subchapter II - Energy Affairs Administration (§§ 10671 — 10673) › § 10671 - Repealed. Act May 27, 2014, No. 57, § 7.03(a), effective May 27, 2014

History —May 28, 2008, No. 73, art. 4, § 1, eff. July 1, 2008; Repealed. Act.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 953 - Economic Incentives Act For The Development Of Puerto Rico (§§ 10641 — 10673) › Subchapter II - Energy Affairs Administration (§§ 10671 — 10673) › § 10673 - Purchase of energy

(a) Tax-exempt businesses that hold a decree granted under this chapter, which establish an electric transmission and distribution system and an electricity feedback system with the Electric Power Authority through the installation of electric solar equipment, windmills, or any other source of renewable energy capable of producing electric power, pursuant to §§ 1011 et seq. of Title 22, as to the net metering program and the applicable federal regulations, shall elucidate any controversy that may arise pursuant to that which is established herein.
(b) Should a controversy arise between the producer and the buyer of energy, as to the costs, terms or other conditions relative to the purchase of energy by the Electric Power Authority from producers of energy on a commercial scale which are tax-exempt businesses, within a term of sixty (60) calendar days as of the date of filing the application, the Executive Director of the Energy Affairs Administration shall appoint an arbitrator to decide on the controversy between the parties. The arbitrator in the procedure provided for herein shall issue his/her determination within sixty (60) days as of the date on which the arbitration procedure began. Said term may be extended for an additional term of up to thirty (30) days by agreement of the parties. The expenses relative to the arbitration procedure provided for herein shall be equally defrayed by the parties.
History —May 28, 2008, No. 73, art. 4, § 3, eff. July 1, 2008.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 954 - Real Property Market Stimulus Act (§§ 10691 — 10700) › § 10692 - Tax exemption applicable to income earned on account of residential property rent

(a) Granting of tax exemption.— The income earned by any eligible lessor from the leasing of a residential property shall be fully exempt from Puerto Rico’s income taxes, including the alternate basic tax and the minimum alternative tax provided in the Code. The tax exemption herein provided shall apply to the income earned with respect to leasing contracts entered into after the effective date of this act, including those entered into after June 30th, 2012, as well as those entered into at the time of the approval of this act.
(b) Term of the exemption. — The exemption herein provided shall only apply for a term of up to ten (10) taxable years, commencing on January 1, 2011, and ending on December 31, 2020.
(c) The rent earned by any eligible lessor subject to the tax exemption provided herein shall not be subject to the withholding of income taxes at source. The benefits of this section shall apply to those eligible taxpayers, regardless of whether they are residents or non-residents of Puerto Rico.
(d) In order to avail him/herself of the benefits of the tax exemption provided herein, the eligible lessor shall include the rent earned in his/her Puerto Rico income tax return and the physical location of the real property and shall declare the rent as exempt income. Otherwise, the net rent shall be taxed in accordance with the applicable provisions of the Code.
(e) This tax exemption from the income earned by any eligible lessor from the leasing of residential property shall also apply to purchasers of residential properties under §§ 10721 et seq. of this title, known as the “Housing Market Boost Program’s Transition Act”.
History —Sept. 2, 2010, No. 132, § 1.2; July 5, 2011, No. 115, § 2; Dec. 30, 2011, No. 288, § 2.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 954 - Real Property Market Stimulus Act (§§ 10691 — 10700) › § 10694 - Use of the losses from the sale of a qualified property

(a) Increase in the limitation of capital loss allowed against regular income.— In the case of a taxpayer other than a corporation or partnership, the limitation mentioned in Section 1121(d)(2) of the Code with respect to capital losses that may be used by the taxpayer against his/her regular income for a determined tax year shall be five thousand dollars ($5,000) insofar as the capital loss generated from the sale of a qualified property effected after the date of effectiveness of this act, but on or before October 31, 2011.
(b) Capital loss carry-over.— In the event that the taxpayer has a net capital loss generated from the sale of a qualified property effected after September 1, 2010, but on or before October 31, 2011, the carry-over of such loss shall not be limited to the succeeding five (5) years, but rather it may be carried over up to a maximum of fifteen (15) years, pursuant to subsection (a) of this section.
(c) To be entitled to the benefits set forth in this section, the taxpayer shall declare the sale in the income tax return corresponding to the year in which the loss was generated.
History —Sept. 2, 2010, No. 132, § 1.4; July 5, 2011, No. 115, § 4.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 954 - Real Property Market Stimulus Act (§§ 10691 — 10700) › § 10695 - Exemption from real property tax

The acquirer of a newly-built property between September 1, 2010, and October 31, 2011, shall be fully exempt for a five (5)-year term from real property taxes imposed pursuant to the provisions of §§ 5001 et seq. of Title 21, and/or §§ 5951–5963 of Title 21, with respect to such property. Such exemption shall be for a term of five (5) years and shall apply commencing on January 1, 2011, and ending on December 31, 2015.
History —Sept. 2, 2010, No. 132, § 1.5; July 5, 2011, No. 115, § 5.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 954 - Real Property Market Stimulus Act (§§ 10691 — 10700) › § 10696 - Exemption from special real property state tax

The acquirer of a newly-built property between September 1, 2010 and October 31, 2011, shall be fully exempt from the special real property state tax imposed pursuant to the provisions of Act No. 7 of March 9, 2009, as amended, with respect to such property.
History —Sept. 2, 2010, No. 132, § 1.6; July 5, 2011, No. 115, § 6.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 954 - Real Property Market Stimulus Act (§§ 10691 — 10700) › § 10697 - Exemption from the collection of fees and duties for public instruments

All parties involved in the sale, effected after September 1, 2010, but on or before October 31, 2011, of a newly-built property shall be exempt from all kinds of charges on account of internal revenue stamps and vouchers required by law for the execution of public documents and their filing and recording in any public registry of the Government with respect to the sale, purchase, leasing, financing, creation of a mortgage of a newly-built property. In order to avail him/herself of the exemption herein, the owner and/or lessor shall submit a copy of the sworn certification of the newly-built property to be issued by the seller of the real property, pursuant to § 10691 of this title to the notary public, Registrar or any government entity before which the benefits of this exemption are claimed, and attached to any document to be filed with the Property Registry. Provided, further, That the seller of a qualified property whose sale was effected after September 1, 2010, but on or before October 31, 2011, shall have a fifty percent (50%) exemption from any kind of charges on account of internal revenue stamps and vouchers required by law for the execution of public documents and their filing and recording in any public registry of the Government with respect to the sale or other transfer of said property. The seller of a qualified property whose sale was effected after September 1, 2010, but on or before October 31, 2011, shall be fully exempt from all kinds of charges on account of internal revenue stamps and vouchers required by law for the execution of public documents and their filing and recording in any public registry of the Government with respect to the cancellation of any mortgage encumbering such property, notwithstanding that the mortgage cancellation deed is executed after October 31, 2011. The purchaser of a qualified property who acquires such property after September 1, 2010, but on or before October 31, 2011, shall have a fifty percent (50%) exemption from any kind of charges on account of internal revenue stamps and vouchers required by law for the execution of public documents and their filing and recording in any public registry of the Government with respect to the purchase and mortgage of such property. Notarial fees and duties shall be governed by the provisions of the Puerto Rico Notarial Act, §§ 2001 et seq. of Title 4.
History —Sept. 2, 2010, No. 132, § 1.7; July 5, 2011, No. 115, § 7.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 954 - Real Property Market Stimulus Act (§§ 10691 — 10700) › § 10698 - Rulemaking authority

The Secretary of the Treasury shall establish through regulations, circular letter, or administrative determination, the necessary guidelines for the implementation of the provisions of this chapter. The regulatory provisions amended or adopted pursuant to this chapter shall not be subject to the applicable provisions of the Uniform Administrative Procedure Act, §§ 2101 et seq. of Title 3.
History —Sept. 2, 2010, No. 132, § 4, retroactive to Sept. 1, 2010.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 954 - Real Property Market Stimulus Act (§§ 10691 — 10700) › § 10699 - Public interest

This chapter and the program established herein constitute information of public interest. Therefore, the Department of the Housing, the Department of Economic Development and Commerce, the Department of the Treasury, the Department of Consumer Affairs, the Housing Financing Authority, the Tourism Company and any related public agency, corporation, and instrumentality are hereby authorize to educate and inform the people about this chapter, its program and benefits, and to promote this program outside of Puerto Rico in order to attract purchasers and investors. It is vital and essential that the people be informed about all that pertains to the program established in this chapter and that this program be promoted outside of Puerto Rico in order to maximize its economic stimulus impact.
History —Sept. 2, 2010, No. 132, § 5, retroactive to Sept. 1, 2010.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 954 - Real Property Market Stimulus Act (§§ 10691 — 10700) › § 10700 - Reports

The Secretary of the Treasury shall file with the Office of the Secretary of the Senate and the Office of the Clerk of the House on April 30th, 2011, March 31st, 2012, August 31st, 2011, and January 31st, 2013, a thorough report on the economic impact, including, but not limited to, the number of persons that have availed themselves of the benefits of this chapter, the number of units sold, and the economic impact of granting the exemption benefits provided herein. These reports shall be consolidated with the reports required under §§ 10721 et seq. of this title, known as the “Housing Market Boost Program’s Transition Act”.
History —Sept. 2, 2010, No. 132, § 6; July 5, 2011, No. 115, § 8; Dec. 30, 2011, No. 288, § 3.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 955 - Act to Provide Tax Incentives for Investments in Solid Waste Reduction, Disposal, and/or Treatment Facilities (§§ 10711 — 10714) › § 10713 - Regulations

The Solid Waste Authority and the Department of the Treasury are hereby directed to draft the regulations needed or to amend any regulations in effect for the implementation of this chapter.
History —July 27, 2011, No. 159, § 5.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 955 - Act to Provide Tax Incentives for Investments in Solid Waste Reduction, Disposal, and/or Treatment Facilities (§§ 10711 — 10714) › § 10714 - Transitory provision

Notwithstanding the provisions of Act No. 7 of March 9, 2009, as amended, and § 30208 of this title, known as the “Internal Revenue Code for a New Puerto Rico”, the Department of the Treasury may grant up to the sum of thirty million dollars ($30,000,000) per fiscal year, plus any amount not adjudicated from the aggregate amount of credits available under § 10712(c) of this title to cover the tax credits for investments made, and tax credit requests filed before the date of approval of this act, with respect to the construction of new solid waste reduction, disposal, and/or treatment facilities, as defined in subsection (g) of Section 21 of Act No. 70 of June 23, 1978, as amended, known as the “Puerto Rico Solid Waste Authority Act,” but only if said new solid waste reduction, disposal and/or treatment facilities are not financed, in whole or in, part by the Government of Puerto Rico. The credit shall be calculated in accordance with the provisions of Section 21 of the “Puerto Rico Solid Waste Authority Act,” as in effect immediately before the approval of this act.
History —July 27, 2011, No. 159, § 6.