P.R. Laws tit. 13, § 10018
No business which has enjoyed or is enjoying tax exemption under Act No. 184 of May 13, 1948, as amended, or under §§ 10001—10011 of this title, shall be entitled or shall otherwise be eligible for tax exemption under this chapter except that:
(a) If such business applied for exemption under §§ 10001—10011 of this title, on or after January 1, 1963, it may elect to be exempt under this subtitle, but in computing the length of the exemptions provided by this chapter, there shall be subtracted the period for which the enterprise enjoyed exemption under §§ 10001—10011 of this title, from the date of the commencement of its operations.
All businesses exempted under §§ 10001—10011 of this title, which convert their exemption under this chapter, may avail themselves of the provisions of subsection (l) of § 10012 of this title as to the commencement of the exemption period, even though the notices required by said subsection be made subsequent to the dates therein required, and in such cases the date of commencing operations shall be the one resulting under said subsection (l) of § 10012 of this title. Provided, however, That the Governor shall refuse any petition for conversion of tax exemption as herein provided in all cases in which he finds that a determination of eligibility is not justified in a new application for tax exemption for the same product, filed under the provisions of § 10013(d)(1) of this title.
(b) Any business exempted under Act 184 of May 13, 1948, as amended, §§ 10001—10011 of this title, or this chapter shall be entitled to the benefits provided by this chapter with respect to an eligible business which produces or proposes to produce a manufactured product separate and distinct from the one being produced by such exempted business, provided a separate plant is established with all the machinery and equipment required for an efficient operation but additional to the one used in any other operation that has enjoyed or is enjoying tax exemption and with a separate and independent accounting system therefor. Whether or not such separate plant has been established shall be determined in the grant of tax exemption. However, this rule shall not be interpreted to prevent the utilization by an exempted business of property or other facilities of or used by another business previously exempted when the value of such property or facilities as determined by the Department of the Treasury of Puerto Rico does not represent, in the judgment of the Governor, a substantial part of one of the businesses in question.
History —June 13, 1963, No. 57, p. 86, § 7.