2023 Laws of Puerto Rico › TITLE TWELVE - Conservation (§§ 1-16 — 8162) › Subtitle 4 - Water Law (1903) › PART III - Water Rights (§§ 701 — 785p) › Chapter 78 - Conservation Easements (§§ 785 — 785p) › § 785m - Tax benefits

(a) For a conservation easement resulting from a donation to be entitled to receive the tax benefits granted under this chapter, it shall have to obtain one of the following documents:
(1) A certification issued by the Department of Natural and Environmental Resources, or the Conservation Trust of Puerto Rico stating that the property or land has natural significance for the conservation of the environment. When establishing this certification the Department of Natural and Environmental Resources or the Conservation Trust of Puerto Rico shall adhere to and comply with the Standards and Practices Guidelines of the Land Trust Alliance, and shall state so in each transaction of a conservation easement or of a donation of eligible lands.
(2) A certification issued by the Institute of Puerto Rican Culture stating that the property or land has cultural significance.
(3) A certification issued by the Department of Agriculture stating that the property or land is classified as land of high agricultural productivity.
(b) In addition to the foregoing, in order for a property or land where a conservation easement is created to be entitled to receive the tax benefits provided under this chapter, a copy of the certification as well as any documents supporting such certification issued by the aforementioned entities attesting compliance with the provisions of this section shall be provided to the Department of the Treasury.
(c) The following shall not receive the tax benefits granted under this chapter:
(1) Properties or lands whose conservation in whole or in part is required by a government agency, public corporation, or any other government instrumentality or municipality as a condition or requirement to approve a construction project, even if the agency has not specified which part of the property or land should be conserved.
(2) Properties or lands undergoing an acquisition or eminent domain process in any of the agencies, government departments or instrumentalities, municipalities, or public corporations.
(3) Properties or lands that are subject to a mortgage lien or lis pendens filed with or registered in the Property Registry. As an exception, the properties or lands subject to a mortgage lien may receive the tax benefits provided herein if the mortgagee agrees to subordinate the mortgage lien to the conservation easement through an instrument or public deed to be registered in the Property Registry. In the event there is more than one mortgage lien on a property or land, the aforementioned process must be followed for each of the mortgage liens.
(4) Structures located in eligible lands, unless the structures in question have a cultural significance and are certified by the Institute of Puerto Rican Culture in accordance with subsection (a)(2) of this section.
(d) The Secretary of the Treasury, or the person designated by him to carry out such duty, shall be the only person empowered to determine whether a tax benefit shall be granted. The agency or entity that issues a natural, cultural, or agricultural significance certificate shall not be empowered to recommend, negotiate, or determine the tax benefit.
(e) The certificate referred to above in this section shall be entitled Certificate of Natural or Cultural Significance and it shall state in detail the reason why the land or property has natural or cultural significance, as established through regulations. Moreover, the Certificate shall bear the official letterhead of the issuing agency or entity, the date of issue, and the name, signature, and position of the person who signs it. A certificate shall be prepared separately for each applicant. If the land or property in question has multiple owners, all owners shall be listed in the certificate, as well as the share of each owner on the land or property. The Certificate shall not include any reference to the appraised value of the property or the tax credit. The Certificate shall include at least the following information:
(1) The name of the applicants who, in turn, are the donors.
(2) The registry description, per parcel, of the lands and properties in question, including the capacity, the entry in the Property Registry, and the cadastre number.
(3) The justification for the natural or cultural significance of the land or property.
(4) The title of the supporting documents of the Certificate, which shall be filed with the Secretary of the Treasury, together with the Certificate, for his evaluation.
(5) A statement that the conservation of the property or land eligible for the Certificate has not been established as a requirement or condition by a government agency, public corporation, or any other government instrumentality for the approval of a construction or development project.
(6) A statement that the property is not under an acquisition or eminent domain process in any agency, department, or instrumentality of the government, or of a municipality or public corporation engaged in the acquisition of property or lands.
(7) Corporate documents or authorization, as the case may be, stating the name and position of the person who is responsible, within the agency or entity, for signing the Certificates.
(8) Any other information required through regulations.
The Certificate of Natural or Cultural Significance shall be issued by the Department of Natural and Environmental Resources, the Department of Agriculture, the Conservation Trust of Puerto Rico, or the Institute of Puerto Rican Culture, as the case may be, through the Puerto Rico Economic Development Interagency Incentive Validation Portal, for the purpose of making it available to the Secretary of the Treasury during the process of issuing the tax benefits established in this chapter. However, during the period in which the Portal is still not operating, it shall be the duty of the entities herein mentioned to issue the Certificate of Natural or Cultural Significance to the agencies, public corporations, and municipalities responsible for awarding the benefits or incentives under this chapter following the ordinary process.
History —Dec. 27, 2001, No. 183, § 16; July 12, 2011, No. 127, § 4; Nov. 17, 2015, No. 187, § 76, eff. Jan. 1, 2016.