Ley 109 del 2001
Resumen
Esta ley enmienda la "Tax Incentives Act of 1998" para otorgar un crédito contributivo a inversionistas que adquieran negocios exentos en proceso de cierre en Puerto Rico. El crédito es del 50% de la inversión elegible, aplicable contra impuestos sobre ingresos. Busca retener empleos, crear nuevas oportunidades y fomentar el desarrollo de capital local.
Contenido
(Note 109)
(Approved on August 17, 2001)
AN ACT
To add subsections
(o) ,
(p) , and
(q) and rename subsection
(o) as subsection
(r) of Section 2; and to add a new Section 5A to Act No. 135 of December 2, 1997, as amended, known as the "Tax Incentives Act of 1998," in order to provide a tax credit for investors who acquire an exempted business in process of closing its operations in Puerto Rico.
STATEMENT OF MOTIVES
The present Government Administration of the Commonwealth of Puerto Rico, in tune with its economic development program, is committed to strengthening the existing industrial base and developing local capital, so that the present jobs may be retained and new employment opportunities be created in the industrial sector.
The present measure reduces the costs of acquiring exempted businesses covered under the industrial tax incentives laws which are undergoing the process of closing their operations in Puerto Rico by granting a tax credit of up to 50% of the amount of the cash investment. In providing an additional benefit for acquiring exempted businesses in the process of closing their operations in Puerto Rico, the public sector joins the efforts of the private sector in order to stimulate the retention of existing jobs and the creation of new ones, to promote the development of a local business base, and to foster economic productivity in relation to exempted businesses.
BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO:
Section 1.-Subsections
(o) ,
(p) , and
(q) are hereby added and subsection
(o) renamed as subsection
(u) [sic] of Section 2 of Act No. 135 of December 2, 1997, as amended, to read as follows: "Section 2.—Definitions.— For the purposes of this Act, the following terms, phrases, and words shall have the meaning and scope stated below:
(o) Investor: Means any person making an eligible investment.
(p) Eligible Investment: (1) Means the amount in cash used to buy the majority of the stock, shares, or operating assets of an exempted business in the process of closing its operations in Puerto Rico, and/or the cash amount contributed into said business for:
(i) building or improving physical facilities and (ii) buying machinery and equipment. Any other investment not made entirely and directly to serve the purposes described in this clause shall be excluded from the definition of 'eligible investment' established in this Act.
The determination as to whether an exempted business is under process of closing its operations shall be made jointly by the Executive Director and the Secretary of the Treasury. (2) The term 'eligible investment' shall not include an investment made with cash originating from a loan secured by the exempted business itself or by its assets.
(q) Industrial Investment Credit: Means the credit granted under Section 5A of this Act.
(r) Definition of Other Terms: For the purposes ...'
Section 2.-A new Section 5A is hereby added to Act No. 135 of December 2, 1997, as amended, to read as follows: "Section 5A.—Industrial Investment Credit.—
(a) General rule.-All investors may claim an industrial investment credit equal to fifty percent (50%) of their eligible investment made after the approval of this Act, to be taken in two (2) installments: the first half of said credit, in the year in which the eligible investment is made; the second half, in subsequent years. Any eligible investment made before the date the income tax return has been filed pursuant to the provisions of Section 1001 et seq. of the Puerto Rico Internal Revenue Code, including any extension granted by the Secretary to file said tax return, shall qualify for tax credit under this Section in the taxable year for which such tax return is filed, provided all the requirements of this Section are met. Said industrial investment credit may be applied against any taxes assessed to the investor under Section 1001 et seq. of the Puerto Rico Internal Revenue Code, including the alternative minimum tax under Section 1017 and the alternative tax on individuals under Section 1011(b) of the Puerto Rico Internal Revenue Code.
(b) Credit carryover.-Any industrial investment credit not used during a taxable year may be carried over to subsequent taxable years until used in its entirety.
(c) All investors shall request an Administrative Determination from the Secretary before claiming the industrial investment credit, whereby the Secretary shall determine whether the investment made or intended is eligible for the tax credit.
(d) Industrial investment credit recovery and base adjustment.- (1) The base of any eligible investment shall be reduced by the amount taken as industrial investment credit, but may never be reduced to less than zero. (2) After the date of issue of the determination mentioned in subsection
(c) of this Section, the Executive Director shall determine the total investment made in the exempted business. Should the industrial investment credit taken by the investors exceed the amount for industrial investment credit computed by the Executive Director, based on the total investment made in the exempted business, said excess shall be owed as income tax payable by the investors in two (2) installments, beginning the first taxable year in which the Secretary notifies the amount owed in terms of the credit taken in excess. The Executive Director shall notify the Secretary of the credit taken in excess by the investors. (3) If any exempted business which gives rise to the industrial investment credit ceases its operations as such before a ten (10)-year term, which shall begin as of the date of the eligible investment, the investor shall owe, in terms of income taxes, an amount equal to the industrial investment credit claimed by said investor, multiplied by a fraction whose denominator shall be ten (10) and whose numerator
shall be the balance of the ten (10)-year term as required by this subsection. The amount owed on account of income taxes shall be paid in two (2) installments, beginning the first taxable year following the date in which the industrial activity ceases.
(e) Granting of industrial investment credit.- (1) After the date of issue of the determination mentioned in subsection
(c) of this Section, the industrial investment credit provided for in this Section may be assigned, sold, or otherwise transferred in whole or in part by an investor to any other person. (2) The base of the eligible investment shall be reduced by the worth of the industrial investment credit thus assigned, sold, or otherwise transferred. (3) Any investor who has assigned its industrial investment credit in whole or in part, and the assignee to the industrial investment credit, shall notify the Secretary of such assignment through a statement to such an effect enclosed in their income tax returns for the year in which the assignment of the industrial investment credit is made. Said statement shall contain the information deemed pertinent by the Secretary as established by regulations promulgated to such an effect. (4) The money or the value of the property received in exchange for the industrial investment credit shall be exempt from taxation under Sections 1001 et seq. of the Puerto Rico Internal Revenue Code and from any municipal and excise
taxes up to an amount equal to the total amount of the industrial investment credit assigned. (5) Buyers of industrial investment credit shall be exempt from taxation under Sections 1001 et seq. of the Puerto Rico Internal Revenue Code concerning the difference between the amount paid to acquire said credit and the worth of said credit."
Section 3.-This Act shall take effect immediately after its approval.
June 11, 2002
Rolando Quevedo-Motta, Esq., Director of the Office of Legislative Services of the Legislature of Puerto Rico, hereby certifies to the Secretary of State that she has duly compared the English and Spanish texts of Act No. 109 (Substitute for H. B. 774) of the $\underline{1}^{ ext {st }}$. Session of the $\underline{14}^{ ext {th }}$. Legislature of Puerto Rico, entitled:
AN ACT to add subsections
(o) ,
(p) , and
(q) and rename subsection
(o) as subsection
(r) of Section 2; and to add a new Section 5A to Act No. 135 of December 2, 1997, as amended, known as the "Tax Incentives Act of 1998," in order to provide a tax credit for investors who acquire an exempted business in process of closing its operations in Puerto Rico, and finds the same are complete, true and correct versions of each other.
Rolando Quevedo-Motta