P.R. Laws tit. 13, § 10031
No business which has enjoyed or is enjoying tax exemption under former acts shall be eligible for tax exemption under this chapter, except as follows:
(a) In those cases provided for in subsections (i), (m) and (n) of § 10032 and § 10030 of this title.
(b) Any business exempted under former acts, or under this chapter, shall be entitled to the benefits provided by this chapter with respect to an eligible business which manufactures or proposes to manufacture a product separate and distinct from the one being produced by such exempted business, provided an industrial unit is established with all the machinery and equipment required for an efficient operation, in addition to that used in any other operation that has enjoyed or is enjoying tax exemption and with an accounting system which reasonably reflects the operations of said industrial unit(s), according to generally accepted accounting principles. This rule shall not be interpreted in the sense of preventing the utilization by an exempted business of property or other facilities of, or used by another previously exempted business when, in the judgment of the Governor, upon the previous recommendation of the agencies that file reports on tax exemption, the value of such property or facilities does not represent a substantial part of one of the businesses in question.
The Governor shall exercise his discretion to determine under which conditions exemption should be granted, with power, within the limits established by this chapter, to limit the period and/or the percentage of the exemption and/or the taxes to be exempted, to condition the operations and the number of jobs, and to grant the same, as may be necessary and convenient for the best interests of the People of Puerto Rico, in consideration of the above-mentioned factors.
(c) A business exempted under former acts, or under this chapter, that due to the nature of its operations merits the granting of an additional tax exemption provided the Governor determines, upon the recommendation of the agencies reporting on tax exemption, that the particular operation results in the best economic and social interests of the People of Puerto Rico in view of the nature of the facilities, the number of jobs, the amount of the payroll, the investment, the location of the project, or other factors which in his judgment justify such determination.
The Governor shall exercise his authority to determine the conditions under which exemption should be granted, with power, within the terms established in this chapter, to limit the period and/or the percentage of the exemption and/or the taxes to be exempted, to condition the operations and the number of jobs, and to grant the same, as may be necessary and convenient for the best interests of the People of Puerto Rico, in consideration of the above-mentioned factors.
History —June 2, 1978, No. 26, p. 55, § 8; July 20, 1979, No. 176, p. 460, § 6.