2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1013 - Other Special Taxpayers (§§ 30501 — 30622) › Subchapter D - Special Partnerships and Partners (§§ 30551 — 30578) › § 30563 - Noneligible partnerships

(a) The provisions of this subchapter shall not apply to those partnerships that enjoy total or partial tax exemption under any provision of §§ 10001 et seq. of this title, §§ 10013 et seq. of this title, §§ 10025 et seq. of this title, Act No. 121 of June 29, 1964, §§ 254 et seq. of this title; and §§ 10038 et seq. of this title, as these have been amended, or under the provisions of any other special law granting tax exemption with respect to its operating income.
(b) Notwithstanding the above, the provisions of this subchapter shall apply to partnerships enjoying tax exemption under the Tourism Incentives Act of 1983, §§ 693 et seq. of Title 23, the Puerto Rico Tourist Development Act of 1993, §§ 6001 et seq. of Title 23, or any successor act of a similar nature, under §§ 891 et seq. of Title 17, known as the “Public and Private Sector Co-Participation Act for the New Housing Operation”, or under §§ 10401 et seq. of this title, known as the “Puerto Rico Agricultural Tax Incentives Act”, or paragraphs (E), (H) or (M) of subsection (d)(1) of § 10642 of this title, known as the “Economic Incentives Act for the Development of Puerto Rico”, or any similar provisions of §§ 10101 et seq. of this title, known as the “Tax Incentives Act of 1998”, or any successor law of a similar nature, including the Green Energy Incentives Act of Puerto Rico and laws that provide incentives for the generation of energy from sustainable renewable sources or alternate sources.
(c) The Secretary shall adopt regulations in connection with the application of the provisions of Act No. 120 of October 31, 1994, as amended, pertaining to special partnerships that operate under a tax exemption decree by virtue of paragraphs (E), (H) or (M) of subsection (d)(1) of § 10642 of this title, known as the “Economic Incentives Act for the Development of Puerto Rico”, any analogous provisions of §§ 10101 et seq. of this title, known as the “Tax Incentives Act of 1998”, or any successor law of a similar nature, including any laws providing incentives to generate energy from alternate or sustainable renewable sources, so that such businesses may opt for the tax treatment under Subchapter D of Chapter 11 of Subtitle A of said Act, and keep income tax fixed rates, full exemption on distributions, special deductions, and tax credits available to grantees of decrees under such laws, regardless of the place of organization, operation or residence of such partner. It shall be understood that tourism businesses referred to in Sections 1033.02(e)(4)(A), 1114.06(a)(4), 1114.06(a)(9), 1114.14(b), and 1114.15(b)(2) of Act No. 120 of October 31, 1994, includes special partnerships that operate under an exemption decree granted pursuant to §§ 10641 et seq. of this title, known as the “Economic Incentives Act for the Development of Puerto Rico”, §§ 10101 et seq. of this title, known as the “Tax Incentives Act of 1998”, or any successor laws of a similar nature, including the Green Energy Incentives Act of Puerto Rico and any laws that provide incentives for the generation of energy from sustainable renewable sources or alternate sources.
History —Jan. 31, 2011, No. 1, § 1114.13, retroactive to Jan. 1, 2011.