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) › § 10623 - Credit availability and carry-over

(a) General rule. — Credit shall be available to be used by the owner against any tax obligation imposed by Subtitle A of the Internal Revenue Code of 1994, on the date that the Executive Director issues the credit certification. The owner shall have to keep the housing units of the project for which he/she received the tax credit pursuant to this chapter rented to low or moderate income families for at least ten (10) consecutive years.
In the event that the same are combined with federal tax credits, the restriction period for the rental rates and income limit shall be based on the applicable regulations in accordance with the allocated tax credit program.
For the purpose of calculating the income tax, the base of the housing units over which credit was received shall be reduced by the amount taken as credit, but shall never be reduced to less than zero.
(b) Availability of credit. — Credit may be claimed and used as of the taxable year in which the Executive Director issues of the credit certification.
(c) Credit certificate. — Credit may be used after the Executive Director, in coordination with the Secretary of the Treasury, certifies the following:
(1) That the new construction or substantial rehabilitation of housing units has been fully completed within the term provided in § 10625 of this title.
(2) That the eligible investment was performed according to the itemized costs of new construction, or the cost of substantial rehabilitation of the housing project as submitted by the owner to the authority. The Executive Director may require the owner to present all those documents and information he/she deems are needed to certify the eligible investment in new construction or substantial rehabilitation of housing units for low or moderate income families, including, but not limited to construction certifications, urbanizing permits and similar documents.
(3) That the number of housing units within the total units for which a qualification certificate was issued were duly rented by the owner to low or moderate income families qualified as such pursuant to this chapter and its regulations, within a term not greater than one hundred and eighty (180) days counting from the date the construction or substantial rehabilitation was completed. Provided, That if the number of units rented is equal to or greater than seventy-five (75%) percent of the total units certified, such number of units shall be the basis to prorate the amount of credits included in the qualification certificate. The amount of credits computed according to the above stated shall constitute the maximum amount of credit that may be claimed by the owner or acquirer of the credit within the term provided in subsection (a) of this section. If the number of rented units does not reach seventy-five (75%) percent of the total certified units, the owner shall have failed to comply with the rent requirement set forth in § 10624 of this title and shall not be entitled to receive any credit whatsoever under the provisions of this chapter; Provided, That said term may be extended for a single additional period of one hundred and twenty (120) days through previous authorization to such effects from the Executive Director. The date of completion in the case of new construction shall be the date of the use permit. In the case of a substantial rehabilitation, the owner shall certify the completion date of the work to the Authority. The Executive Director, through regulations, shall establish the terms and requirements for this certification. The housing units must be rented for a term of not less than one hundred and eighty (180) days for each year under the renting conditions provided in this chapter, and pursuant to the regulations adopted thereunder.
(d) Credit carryover. — The portion of the credit which is not used in a specific tax year, may be carried over to subsequent tax years up to a maximum of ten (10) years counting from the date the Executive Director issues the corresponding credit certification.
History —Oct. 4, 2001, No. 140, § 4; Aug. 13, 2008, No. 261, § 3.