2023 Laws of Puerto Rico › TITLE TWENTY-NINE - Labor (§§ 1 — 3004) › PART VI - Guaranteed Income (§§ 2001 — 2109) › Chapter 87 - Wage Incentives for Creation of Jobs (§§ 2101 — 2109) › § 2104 - Participation requirements for enterprises

Any enterprise that is interested in enjoying the incentives established in this chapter must meet the following requirements:
(a) It shall belong to or be identified with the manufacturing, commerce, services, tourist, construction, agriculture, agro-industrial or recycling sectors.
(b) Be a small business or self employment agency as defined herein, with municipal license, in either case.
(c) It shall not receive any other wage benefit of any kind from the state or federal government per participants in the program. If the enterprise receives any other wage benefit in this regard, and ends it prior to the date agreed upon, it shall not receive the incentive established by this chapter.
(d) It shall recruit participants in accordance with this chapter, pursuant to the procedures and guidelines established by the Administration.
(e) Owe no taxes to the Commonwealth of Puerto Rico, the municipalities, nor the federal government. The enterprise shall submit evidence of having filed its income tax returns for the five (5) tax years prior to the year the contract is executed and owes no taxes to the Commonwealth of Puerto Rico. Provided, That a tax debt shall mean debt on account of any income taxes, excise tax, real or movable property taxes, including any tax of a special nature, license fees, taxes withheld at source in payment of salaries and professional services, payment of interest, dividends, revenues, to individuals, on non residents corporations, and partnerships, and on the payment of interest, dividends and other distributions of earnings to resident individuals, unemployment insurance, temporary disability and chauffeurs social security (whichever is applicable) owed by the contractor to the Commonwealth of Puerto Rico. Businesses less than five (5) years in existence, shall submit all income tax returns they have filed at the time they request the benefit, and certify that they have no outstanding tax debts with the Commonwealth of Puerto Rico, nor with the municipalities, as previously defined herein. Due to their nature, new businesses that wish to request the benefit shall not have to meet the requirement of presenting business tax returns, however, they do need to present the negative personal debt certification of the owner, or a duly approved payment plan from the Department of the Treasury and a sworn statement that is explained below. Any of these businesses that cannot submit their tax evidence for the last five (5) years, whether for the abovementioned reasons or any of the reasons established in the Internal Revenue Code, as amended, shall submit a sworn statement stating the reasons for which they are not bound to file income tax returns. Said sworn statement shall be subject to the penalty of perjury, as it is typified in the Penal Code, as amended. The statement shall be made a part of the contract. In those cases that it applies, evidence of their compliance with a payment plan duly authorized by the Secretary of the Department of the Treasury de Puerto Rico, shall be submitted.
(f) It shall offer the participants the same rights and benefits received by the other employees of the enterprise and shall evaluate then using the same criteria used for other employees in the same position.
(g) It shall comply with the federal and state labor and taxing laws, norms and regulations, and any others applicable to the enterprise in question.
(h) Once the enterprise obtains the direct employment certificate and begins to receive its benefits, it shall report the participants that have left their employment to the Administration explaining in detail the reasons therefor. In those cases that there is a finding of unjustified dismissal, the enterprise shall reimburse the wage incentive of which it was a beneficiary. If the direct employment certificate is still in effect when the participant terminates his/her employment in the business, said certificate must be returned to the Administration within fifteen (15) days following the termination of employment. If the direct employment certificate is not in effect, the enterprise shall return it to the Administration within fifteen (15) days following its date of expiration and the participant may obtain another, through the procedures set forth by this chapter.
Furthermore, in order to ensure an adequate adjustment and adaptation of the participants, the enterprise shall offer the participant the opportunity of on the job training any other form that the Administrator may determine through regulations. The same may be carried out in said enterprise or in coordination with other government agencies or entities.
(i) No worker shall be discriminated against in obtaining employment, for having or not having a certificate. Both state and federal laws and regulations shall apply.
(j) It shall commit itself to retain the employee permanently once the wage incentive granted by this chapter ends.
(k) Submit a three (3) year business plan along with the request. Orientation on how to prepare a business plan may be obtained from the Administration.
(l) Any other document requested by regulation.
History —June 17, 1996, No. 54, § 5; Aug. 19, 1997, No. 90, § 4; renumbered as § 6 by § 2 and amended by § 7 on Aug. 20, 2003, No. 202.