P.R. Laws tit. 17, § 894
The income earned by an owner of a newly-built or rehabilitated affordable housing project from the sale thereof shall be exempt from the payment of income taxes, provided that:
(a) The construction or rehabilitation of the housing units for sale has begun after the effective date of this act and before December 31 st, 2018.
(b) Prior to the beginning of the construction or rehabilitation work, he presents an itemized cost breakdown duly approved by the Program Administrator.
(c) The buyer of the housing unit is a low or moderate income family or a middle class family, as defined in this chapter and certified as eligible by the mortgagee who originates the permanent mortgage financing for the housing.
(d) The income on which the tax exemption is claimed, in the case of affordable housing, is the product of profits that do not exceed a maximum of five thousand dollars ($5,000) per housing unit derived from the sale of affordable housing units and that said profits have an exclusive direct relationship with the affordable housing project to which said income is attributed. In the case of middle class housing, an exemption of two thousand five hundred dollars ($2,500) shall only be granted per housing unit against the profits derived from the sale of middle class housing units when said profits are directly related to the middle class housing project to which said revenues are attributed. However, the exemption of two thousand five hundred dollars ($2,500) provided in this subsection may be used against the profits from the sale of a regular housing project of the same developer as described below. A developer may take the exemptions corresponding to the construction of four (4) middle class housing units, or ten thousand dollars ($10,000), against the profits from the sale of each regular housing unit of the same developer. The exemption of two thousand five hundred dollars ($2,500) provided in this subsection shall be available only for middle class housing units built after July 1, 2001.
(e) The owner shows, to the satisfaction of the Secretary of the Treasury, that at the moment the sale is executed the housing unit to which the income is attributed did not have a lien or tax burden.
History —June 26, 1987, No. 47, p. 159, § 4; Dec. 29, 1989, No. 2, p. 643, § 3; Dec. 10, 1993, No. 121, § 2; Aug. 28, 1997, No. 105, § 2; Dec. 31, 1999, No. 369, § 2; Aug. 17, 2001, No. 118, § 3; May 11, 2004, No. 114, § 2; Dec. 14, 2007, No. 198, § 2; May 12, 2011, No. 72, § 1; Nov. 17, 2015, No. 187, § 36.