2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART IV - Excise Taxes (§§ 31601 — 31771) › Chapter 1033 - Exemptions to Taxes on Goods (§§ 31651 — 31671) › § 31653 - Excise tax refund for vehicles propelled by combined or alternative energy

(a) Definitions.— For purposes of this section, the following shall be treated as vehicles propelled by combined or alternative energy:
(1) Hybrids.— Those that combine a conventional combustion engine with an electric engine with regenerated and rechargeable energy.
(2) Electric.— Those that are propelled by electric power and do not produce any kind of emissions to the environment.
(3) Hydrogen-propelled.— Those that are propelled by hydrogen for combustion or by hydrogen-fed fuel cells.
(4) Biodiesel-propelled.— Those propelled by the combustion of diesel derived from vegetable oil and animal fat.
(5) Ethanol-propelled.— Those propelled by alternative energy produced from alcohol originating from natural crops.
(6) Methanol-propelled.— Those propelled by methanol produced by the combustion of coal or wood oil.
(7) Natural gas-propelled.— Those propelled by the combustion of a mixture of hydrocarbon gases that emerge from oil deposits, primarily methane mixed with a variety of amounts of ethanol, propane, butane, and other gases.
(8) Propane gas-propelled.— Those propelled by the combustion of liquefied petroleum gas.
(9) “P-series” automobiles.— Those propelled by the combustion of a mixture of liquefied natural gases (pentanes plus), ethanol, and the biomass-derived co-solvent methyltetrahydrofuran SP= (“MeTHF”).
(b) A payment refund for the excise taxes established herein shall be granted to motor vehicles propelled by combined or alternative energy which are introduced into or manufactured in Puerto Rico.
(c) The motor vehicle dealership or the person who pays the excise tax upon the introduction of the vehicle into Puerto Rico shall issue an invoice to the buyer of the vehicle itemizing the amount paid on account of excise taxes.
(d) The buyer of the vehicle shall have one hundred and eighty (180) days from the time of acquisition of the vehicle to request the Department for the excise tax payment refund. Said request shall be submitted, along with the invoice issued by the dealership or the person who paid the excise tax upon the introduction of the vehicle into Puerto Rico, in the form that the Secretary establishes for such purposes.
(e) The refunds provided in this section shall be granted as follows:
(1) Electric vehicles: a full refund of the corresponding excise tax for the vehicle within this category when bought on or before June 30, 2016.
(2) A refund shall be granted for the total amount of excise taxes paid for plug-in hybrid electric vehicles and conventional hybrid electric vehicles when the total amount of the excise tax is $2,000 or less.
(3) The refund for plug-in hybrid electric vehicles and conventional hybrid electric vehicles when the excise tax paid is greater than $2,000 shall not exceed the following amounts:
(a) 65% of the excise tax, this refund shall never exceed $8,000 or be less than $2,000, from July 1, 2012 through June 30, 2013,
(b) 50% of the excise tax, this refund shall never exceed $6,000 or be less than $2,000, from July 1, 2013 through June 30, 2014,
(c) 40% of the excise tax, this refund shall never exceed $4,000 or be less than $2,000, from July 1, 2014 through June 30, 2015, and
(d) 25% of the excise tax, this refund shall never be less than $2,000, from July 1, 2015 and thereafter.
(4) The incentives proposed in this Section shall be available up to June 30, 2016. On that date, the Legislative Assembly shall conduct an evaluation on the effects these incentives have had, as well as their availability and desirability to determine whether they should be granted for additional terms.
(5) The Department may transfer the refund established herein to the financial institution which financed the purchase of the vehicle at the request of the buyer.
(f) There shall be granted a full exemption from the payment of the excise tax imposed by this part on alternative fuel vehicles purchased by bona fide residents of the municipality of Culebra or the municipality of Vieques who dispose of their previous motor vehicles in an environmentally-friendly manner. The exemption granted in this section shall be limited to the purchase of one automobile per year for personal use. For purposes of the exemption provided in this section, it shall be understood as a bona fide resident any person who year-round resides in a principal residence located in the municipality of Culebra or in the municipality of Vieques. However, if the owner of the motor vehicle who is enjoying the exemption granted herein sells, transfers, or otherwise conveys the same, the new buyer shall be required to pay, prior to taking possession thereof, the excise tax resulting from the application of the table contained in § 31628 of this title, taking as basis the taxable price over which the exemption was granted, minus the depreciation thereof. The exempt person shall be responsible for requiring the new buyer proof of payment of the excise tax before delivering the motor vehicle.
(g) For purposes of the refund granted by this section, the term “motor vehicles” means automobiles and buses, as such terms are defined in clauses (1) and (2) of subsection (b) of § 31628 of this title, respectively.
(h) The Secretary shall prescribe by regulations, circular letter, or any other administrative determination or communication of a general character, the procedure and requirements for requesting a refund or exemption in accordance with this section.
History —Jan. 31, 2011, No. 1, § 3030.03, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 133; Aug. 23, 2012, No. 204, § 1; Oct. 28, 2013, No. 125, § 1.