Ley 110 del 2001
Resumen
Esta ley enmienda la Ley de Incentivos Contributivos de 1998 para aumentar el crédito fiscal disponible para las empresas exentas que compran productos manufacturados en Puerto Rico. El crédito aumenta del 10% al 25% para productos generales y del 15% al 35% para productos hechos de materiales reciclados. La ley busca estimular el consumo de productos locales y extender este beneficio a empresas con decretos bajo leyes de incentivos anteriores.
Contenido
(No. 110)
(Approved on August 17, 2001)
AN ACT
To amend subsection
(b) of Section 5 of Act No. 135 of December 2, 1997, as amended, known as the "Tax Incentives Act of 1998," in order to increase the credit for the purchase of products manufactured in Puerto Rico made available to businesses exempted by said Act and by preceding tax incentives laws.
STATEMENT OF MOTIVES
The Tax Incentives Act of 1998 currently provides credit for the purchase of products manufactured in Puerto Rico. The experience gained during the three years this law has been in force has proven that exempted businesses have not been using this benefit to the maximum. However, it is common knowledge that the purpose and aim of this credit is to stimulate the consumption of products made in Puerto Rico.
With this major objective in mind, it is therefore necessary to amend subsection
(b) of Section 5 of Act No. 135 of December 2, 1997, as amended, in order to increase the credit from ten percent (10%) to twenty-five percent (25%) when purchasing products manufactured in Puerto Rico and from fifteen percent (15%) to thirty-five percent (35%) when purchasing commercial products made of recycled materials.
In view of the changes experienced by the manufacturing sector due to the great competitiveness and the globalization of markets and in acknowledgment of the importance of fostering the purchase of products
made in Puerto Rico, this measure specifically seeks to increase the tax credit granted to industries under the Tax Incentives Act of 1998 for having purchased products manufactured in Puerto Rico; this measure also seeks to extend this credit to any exempted business holding a decree granted under any of the tax incentives laws preceding the Tax Incentives Act of 1998.
The Legislature of the Commonwealth of Puerto Rico believes the approval of this measure to be necessary, in order to foster and to more assertively provide incentives for the purchase of products manufactured in Puerto Rico, which shall result in benefit to the economic and social development of our Island.
BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO:
Section 1.-Subsection
(b) of Section 5 of Act No. 135 of December 2, 1997, as amended, is hereby amended to read as follows: "Section 5.—Credits.—
(a) ...
(b) Credit for the Purchase of Products Manufactured in Puerto Rico.
If an exempted business that holds a decree granted under this Act or under preceding incentives laws, buys products manufactured in Puerto Rico, including components and accessories, it may earn a credit against the fixed industrial development income tax provided in Section 3 of this Act, equal to twenty-five (25) percent of the purchase price of said products during the taxable year in which said credit is earned, reduced by the average of the purchase price of said products for the three (3) previous taxable years, or that portion of said period that is applicable, up to a maximum of twenty-five (25) percent of said tax; this credit shall be granted solely for the purchase of products
that have been manufactured by firms unrelated to the exempted business, and said purchases shall be excluded from the total purchases of products manufactured in Puerto Rico by the exempted business, for the purposes of the above calculation.
In the event that the exempted business that holds a decree granted under this Act, buys products transformed into commercial articles made from recycled materials or with raw materials from materials recycled by exempted businesses which have been granted a tax exemption decree under clause (24) of subsection
(e) of Section 2 of this Act, or preceding laws, the credit granted hereby shall be equal to thirty-five (35) percent of the total purchases of said products during the taxable year for which the credit is claimed.
The credit provided in this subsection which is not used by the exempted business may be carried over to subsequent taxable years, until said credit is exhausted.
Provided, that in the case of businesses exempted under preceding laws that have availed themselves of the renegotiation benefits provided in subsection
(a) of Section 8 of this Act, the credit provided in this subsection shall be prorated between the base period income described in said subsection
(a) of Section 8, and the incremental industrial development income, excluding the income derived from the investments described in subsection
(j) of Section 2 of this Act. Both incomes shall be computed under the provisions of law applicable to each pursuant to Section 8 of this Act. In the case of the base period income, the credit provided herein may only be claimed during the remainder of the
exemption period of the decree in effect as of the date of the application for the renegotiation. The credit attributable to the base period income may only be used against the tax on distributions of industrial development dividends or profits of the exempted business levied under Act No. 8 of January 24, 1987, as amended, under Act No. 26 of June 2, 1978, as amended, or under the 'Puerto Rico Internal Revenue Code,' as applicable. The credit attributable to incremental industrial development income may be used as a credit against the fixed industrial development income tax rate provided in subsection
(a) of Section 3 of this Act, as provided, and subject to the limitations of this subsection.
Section 2.-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. 110 (H.B. 775) of the $1^{ ext {st }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico, entitled:
AN ACT to amend subsection
(b) of Section 5 of Act No. 135 of December 2, 1997, as amended, known as the "Tax Incentives Act of 1998," in order to increase the credit for the purchase of products manufactured in Puerto Rico made available to businesses exempted by said Act and by preceding tax incentives laws, and finds the same are complete, true and correct versions of each other.
Rolando Quevedo-Motta