Ley 169 del 2001
Resumen
Esta ley enmienda el Código de Rentas Internas de Puerto Rico de 1994 para otorgar un crédito contributivo a las empresas que adquieren productos manufacturados en Puerto Rico para exportación o para venta y consumo local. El crédito es del 10% del valor de las compras, sujeto a ciertas limitaciones y definiciones de 'negocio elegible', 'productos manufacturados en Puerto Rico', 'negocio manufacturero' y 'persona relacionada con el negocio'.
Contenido
(No. 169)
(Approved December 3, 2001)
AN ACT
To add Sections 1040D and 1040E to Subtitle A of Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994," in order to grant a tax credit to businesses that acquire products manufactured in Puerto Rico for export, and to businesses that acquire products manufactured in Puerto Rico that are to be sold for local use and consumption.
STATEMENT OF MOTIVES
It is a priority of the Government of the Commonwealth of Puerto Rico to search for new strategies to promote the optimum development of our industry. One of these is to provide incentives for the purchase of products manufactured in Puerto Rico to strengthen our local entrepreneurial base and foster the development of new products by the manufacturing firms established in Puerto Rico.
The quality of the products manufactured in Puerto Rico has been and is an essential factor that stimulates the industries to want to manufacture goods in Puerto Rico for overseas markets. To the degree that we broaden our horizons to take our products to other countries, we shall be helping our industries to grow and develop in tune with the growth of the world markets. We must therefore provide incentives for the purchase of products manufactured in Puerto Rico by those businesses that, in turn, export said
products to places where they have commercial presence and where they are able to sell said products.
Furthermore, it is important to encourage the sale in Puerto Rico of the products made in Puerto Rico for local use and consumption. Thus we shall strengthen our manufacturing industry internally, provide incentives for the creation of new businesses, and foster the creation of new jobs. As a result we shall be able to favorably achieve the development of our local economy.
To achieve this purpose, this legislation grants businesses a tax credit against the income taxes levied by the Puerto Rico Internal Revenue Code of 1994, as amended, of ten (10) percent of the value of the purchase of products manufactured in Puerto Rico to be exported or distributed for sale abroad. It also grants a similar credit to those businesses that purchase products manufactured in Puerto Rico that are to be sold for local use and consumption.
The approval of these amendments to the Puerto Rico Internal Revenue Code of 1994, as amended, lends the diversified commercial sector the opportunity to take advantage of the tax credits herein provided. In turn, these amendments would encourage these sectors to acquire products manufactured locally, thus helping our manufacturing industry to benefit from already established markets, so that they may increase their local production.
BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO:
Section 1.-Section 1040D is hereby added to Subtitle A of Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994," to read as follows:
"Section 1040D.—Credit for the Purchase of Products Manufactured in Puerto Rico for Export.—
Any eligible business that purchases products manufactured in Puerto Rico for export, directly or through business-related persons, may claim a credit against the tax levied under Subchapter A, as provided in this Section.
(a) Amount of credit.-The credit provided under this Section shall be equal to ten (10) percent of the value of the purchases of products manufactured in Puerto Rico, for the specific tax year for which the credit is claimed and during which the products are exported to be sold outside of Puerto Rico for their use and consumption abroad, reduced by the average value of the purchases of said products made during the base period. For the purpose of determining this credit, the purchases of products manufactured in Puerto Rico by persons related to the eligible business and by the manufacturing businesses that have an investment abroad, whether directly or through business-related persons, that exceeds the limit established by the Secretary through regulations, circular letter, or any other generally applicable administrative determination, shall be excluded.
(b) Limitation of credit.-The credit provided under this Section may be used to reduce the tax levied to the eligible business under Subtitle A for up to twenty-five (25) percent. Any credit not used by the eligible business may be carried over to subsequent years until it is completely used, subject to the above limitation.
(c) Definitions.-For the purposes of this Section, the following terms shall have the meaning provided below:
(1) Eligible business.-Any business engaged in an industry or business in Puerto Rico that is not under the provisions of the Tax Incentives Act of 1998, Act No. 135 of December 2, 1997, as amended, or any other previous or subsequent similar law. (2) Products manufactured in Puerto Rico.-Shall include products turned into articles for trade from raw materials through any process, and any product made in a manufacturing business in Puerto Rico, as defined in clause (3). (3) Manufacturing business.-Any person or entity engaged in the manufacture of any article or product in Puerto Rico, including bottlers, assemblers of articles, and persons who finish partially manufactured articles. (4) Business-related person.- (A) General rule.-For the purposes of this Section, a corporation or partnership shall be deemed to be a business-related person if it owns at least fifty (50) percent of the voting shares or stock, or at least fifty (50) percent of the total value of all types of shares or stock of the eligible business. (B) Shares or stock to be treated as owned.-For the purposes of subclause (A), the following shares or stock shall be deemed as owned by the businessrelated person:
(i) Shares or stock owned directly by the businessrelated person.
(ii) Shares or stock owned by a corporation or partnership in which the business-related person owns fifty (50) percent or more of the voting shares or stock, or of the total value of all the types of shares or stock of said corporation or partnership. (iii) Shares or stock owned by a person who owns fifty (50) percent or more of the voting shares or stock or at least fifty (50) percent of the total value of all types of shares or stock of the business-related person. (5) Base period.—Means the three (3) taxable years prior to the year for which credit is claimed, or that part of said period that is applicable."
Section 2.-Section 1040E is hereby added to Subtitle A of Act No. 120 of October 31, 1994, as amended, known as the Puerto Rico Internal Revenue Code of 1994, to read as follows: "Section 1040E.-Credit for Purchase of Products Manufactured in Puerto Rico for Local Sale and Consumption.-
Any eligible business that purchases products manufactured in Puerto Rico to be sold locally may claim a credit against the tax levied under Subtitle A, as provided in this Section.
(a) Amount of credit.—The credit provided under this Section shall be equal to ten (10) percent of the value of the purchases of products manufactured in Puerto Rico, for the specific taxable year for which credit is claimed and during which said products are sold locally for use and consumption in Puerto Rico, reduced
by the average value of the purchases of said products made during the base period. For the purpose of determining the credit, the purchases of products that have been manufactured in Puerto Rico by persons related to the eligible business, shall be excluded.
(b) Limitation of credit.-The credit provided under this Section may be used to reduce the tax of the eligible business levied under Subtitle A, for up to twenty-five (25) percent. Any credit not used by the eligible business may be carried over to subsequent tax years until it is completely used, subject to the above limitation.
(c) Definitions.-For the purposes of this Section, the following terms shall have the meaning indicated below: (1) Eligible business.-Any business engaged in an industry or business in Puerto Rico whose annual volume of sales does not exceed the limits established by the Secretary through regulations, circular letter or any generally applicable administrative determination. (2) The terms 'manufactured products,' 'manufacturing business,' 'business-related person' and 'base period' shall have the same meaning provided in clauses (2), (3), (4) and (5) of subsection
(c) of Section 1040D, respectively."
Section 3.-Effectiveness.- This Act shall take effect immediately after its approval, but its provisions shall apply for the taxable years beginning after December 31, 2001.
CERTIFICATION
I hereby certify to the Secretary of State that the following Act No. 169 (H.B. 1665) of the $2^{ ext {nd }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to add Sections 1040D and 1040E to Subtitle A of Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994," in order to grant a tax credit to businesses that acquire products manufactured in Puerto Rico for export, and to businesses that acquire products manufactured in Puerto Rico that are to be sold for local use and consumption, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $26^{ ext {th }}$ of September of 2002.
Elba Rosa Rodríguez-Fuentes Director