Esta ley enmienda el Código de Rentas Internas de Puerto Rico de 1994 para otorgar una deducción adicional especial a los comerciantes de Río Piedras afectados por la construcción del Tren Urbano. La deducción es equivalente al cincuenta por ciento (50%), hasta un máximo de mil (1,000) dólares, del total pagado por servicios de agua, energía eléctrica y teléfono que constituyan gastos operacionales. Esta deducción aplica por un período de tres años.
(S. B. 940) (Conference) (No. 38) (Approved January 8, 2004)
To add a Section 1023 (cc) to Act No. 120, of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994", to grant a special additional deduction, equivalent to fifty (50) per cent, up to one thousand $(1,000)$ dollars, of the total amount paid to the merchants of Río Piedras affected by the building of the Urban Train project, for water, electric power and telephone services.
Business in the town of Río Piedras has suffered through the years from the neglect of government bodies. Several attempts have been made to improve the economy of this sector that has been affected by many circumstances.
The unchecked development of commercial centers and the explosion of the Humberto Vidal store, among other factors, has reduced the number of clients who do their shopping in Río Piedras. As if this were not enough, during recent years, the development and construction of the Urban Train project has caused a chaos in down town Río Piedras, limiting access and parking space in the sector. The movement of machinery, heavy vehicles and others has caused a negative impact on a business area that was already facing significant problems.
This project has also caused a considerable decrease in the number of customers, triggering innumerable shop closures. This situation makes it indispensable for the government of the Commonwealth of Puerto Rico to establish measures to bolster the economy of the town of Río Piedras anew.
This bill amends Act No. 120 of October 31, 1994, as amended, to grant the merchants of Río Piedras affected by the construction of the Urban Train, an additional special deduction of fifty (50) percent up to one thousand $(1,000)$ dollars of the total amount paid for water, electric power, and telephone rental services that constitute operational expenses. This deduction shall be for the term of three (3) years. In this way, the commercial development of businesses in the area shall be bolstered, thus avoiding the closing of an increasing number thereof which would turn the Río Piedras hub into a dead zone.
Section 1.- Section 1023 (cc) is hereby added to Act No. 120, of October 31, 1994, as amended, to read as follows: "Section 1023 (cc.- Special Additional Deduction for Merchants of Río Piedras In the case of an individual, corporation or domestic partnership doing business in the hub of Río Piedras, subject to taxation by virtue of this Code, a special additional deduction, of fifty (50) per cent, up to one thousand $(1,000)$ dollars shall be admitted, of the total amount paid for water, electric power and telephone services, that are operating expenses. To such effects, the taxpayer who wishes to benefit from this deduction must submit, together with his tax return, a certificate issued by the Aqueduct and Sewer Authority, by the Electric Power Authority and by his basic telephone service supplier, certifying the total amount paid for the expenses mentioned above for the taxable year. Provided, that the deduction offered in this Section is limited to a period of three (3) years. The Secretary of the Treasury shall promulgate the regulations he deems necessary and convenient to provide all the requirements regarding the additional information and documents required from tax payers to qualify for this deduction."
Section 2.- This Act shall take effect immediately after its approval, but its provisions shall be applicable to the tax years beginning after December 31, 2002.
I hereby certify to the Secretary of State that the following Act No. 38 (S.B. 940) (Conference) of the $6^{ ext {th }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to add a Section 1023 (cc) to Act No. 120, of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Act of 1994", to grant a special additional deduction, equivalent to fifty (50) per cent, up to one thousand $(1,000)$ dollars, of the total amount paid to the merchants of Río Piedras affected by the building of the Urban Train project, for water, electric power and telephone services, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $4^{ ext {th }}$ of May of 2005.
Luis E. Fusté-Lacourt Director