P.R. Laws tit. 13, § 10642
For the purposes of this chapter, the following terms, phrases and words shall have the meaning and scope stated hereinbelow:
(a) Industrial development income.—
(1) The net income derived from the operation of an eligible activity or service designated by a tax-exempt business that holds a decree granted under this chapter, computed pursuant to the Puerto Rico Internal Revenue Code, adjusted by the special deductions provided by this chapter, including the income from the operation of said tax-exempt business when it makes an election under § 10650(b) of this title.
(2) The eligible income described in subsection (j) of this section or under similar provisions of similar preceding or subsequent acts.
(3) The net income derived from the operation of a tax-exempt business that holds a decree granted under this chapter as the result of currency exchange that is attributable to the sale of products or to the rendering of services to foreign countries, including the net income derived from hedging transactions.
(4) The income received as dividend or benefit by a corporation or partnership that has stocks or shares in the tax-exempt business that conducts the distribution and which income is attributable to the industrial development income derived by said tax-exempt business.
(5) The net income derived by the tax-exempt business that holds a decree granted under this chapter from business interruption insurance policies, provided that there is no reduction in the employment level in the tax-exempt business as a result of the act which caused the collection of said income.
(6) The net income derived from the sale of the intangible property and any other right to receive income related to activities or intangible property owned by the tax-exempt business with a decree under this chapter.
(b) Property devoted to industrial development.—
(1) Real property, including land and improvements or parts thereof, as well as any addition equivalent to not less than twenty-five percent (25%) of the area of the main plant devoted to the exploitation of an industry that is made available to and used or owned by a tax-exempt business that holds a decree granted under this chapter in its development, organization, construction, establishment or operation.
(2) Machinery and equipment needed for a tax-exempt business that holds a decree granted under this chapter to carry out the activity that motivated the granting of the tax exemption that is owned, installed, or otherwise used under contract by said tax-exempt business.
Nothing of the provided under this subsection shall apply to contracts known as financing leases.
(c) Tax-exempt business.— An eligible business, as defined in this chapter, established or to be established in Puerto Rico by a natural or juridical person or a combination thereof, organized or not under a common name that has been granted one or two tax exemption decrees but excluding hotels, inns or other special facilities that are tax-exempt businesses under §§ 693 et seq. of Title 23 or §§ 6001 et seq. of Title 23.
(d) Eligible business.—
(1) For the purposes of this chapter, the following shall be tax-exempt businesses:
(A) Any industrial unit that is established permanently for the production of any manufactured product at commercial scale.
(B) The provisions of paragraph (A) of this clause notwithstanding, any industrial entity that is established permanently for the production of a manufactured product at commercial scale that has not been eligible under § 10101(d)(1) of this title nor considered as a designated article under § 10101(e) of this title, or similar provisions under prior laws shall enjoy the benefits provided in this chapter exclusively with respect to their exporting activities, and at the same time, shall be subject to the limitations regarding the determination of industrial development income and to the base period income established in subsections (f) and (g) of § 10643 of this title.
(C) Any industrial unit that would normally be considered as an eligible business under the preceding paragraphs, but that because of the competition of other jurisdictions due to low production costs, among other factors, it is not economically feasible to do the entire manufacturing operation in Puerto Rico, and thus it is required that part of the process or elaboration of the product is conducted outside of Puerto Rico.
For the purposes of this subsection, the Secretary of Development, upon endorsement of the Executive Director and the Secretary of the Treasury, may determine that such industrial unit be considered as an eligible business in consideration of the nature of its facilities, of the investment in the property, machinery and equipment, the number of jobs to be created in Puerto Rico, the amount of the payroll and any other criteria or factors that so warrant it.
(D) Any bona fide office, business or establishment with its equipment and machinery, with the capacity and necessary expertise to render a service at commercial scale, provided it complies with one of the following modalities:
(i) The rendering on a commercial scale in Puerto Rico of a designated service, as described in subsection (h) of this section for foreign markets, including markets in the United States, subject to providing a substantial amount of said service continuously and within a reasonable period of time, as determined through regulations by the Executive Director.
It shall be understood that the service is rendered for foreign markets even when the service is rendered to another business established in Puerto Rico, which ultimately exports the designated service.
An entity that provides designated service may also render services for the local market provided that it can satisfactorily show to the Secretary of the Treasury the income obtained from sources without Puerto Rico through an accounting method that clearly reflects said income.
(ii) The rendering of a service in Puerto Rico through subcontracting, that is fundamental for the production process of an exempted manufacturing business that belongs to clusters classified as of high economic impact by the Executive Director, upon consultation with the Planning Board, as established in the Promotional Planning Proposal of the Industrial Development Company. The criteria to classify a conglomerate as one of high economic impact shall be established through regulations by the Executive Director.
(iii) The rendering of services in Puerto Rico on a commercial scale and continuously in Puerto Rico to a tax-exempt business as key supplier of said tax-exempt business that is a unit engaged in manufacturing. A supplier shall be considered as a key supplier if his/her services enable the tax-exempt business that is its usual client to devote its activities to the areas of its main competition.
For the purposes of this subparagraph, key provider services shall be those that are costs directly related to the manufacturing activities of a tax-exempt business, including, among others, the following:
(I) Specialized storage.
(II) Inventory management of raw material, material in process, end product and inventory of parts, including receipt, storage and inspection.
(III) Logistics regarding the distribution of manufactured products and the export of services by tax-exempt businesses, excepting material and document transportation services provided by businesses devoted mainly to the transportation business to consumers and nonexempt enterprises.
(IV) Insertion and distribution of printed material.
(V) Digitalization of documents.
(VI) Sterilization of instruments, equipment and clean room garments.
(VII) Quality control and validation of processes, equipment and systems services.
(VIII) Rating of equipment, utilities or facilities and calibration and maintenance of equipment.
(IX) Repair and remanufacture of products.
(X) Project engineering.
(XI) Programming and data system management services.
(XII) Specialized technical training.
(XIII) Development and reproduction of educational programs.
(XIV) Logistics related to sales functions and purchases such as those pertaining to orders and transportation.
(iv) In the case of the service units described under this paragraph, not less than eighty percent (80%) of the employees, technicians and professionals of the service unit shall be residents of Puerto Rico.
(v) In the case of the service units described under this paragraph that are operating in Puerto Rico prior to submitting their application, the same shall be subject to the limitations regarding the base period income established in § 10643(g) of this title.
(vi) Legal, accounting or tax consultant services shall not constitute key services.
(E) Property devoted to industrial development.
(F) Animal breeding for experimental use in scientific research, medicine and similar uses.
(G) Research and scientific or industrial development laboratories for the development of new products or industrial processes, or to improve the same for experimental purposes, clinical, epidemiological and basic science research in mental health projects, scientific investigation of medicines and other similar purposes.
(H) Any business that is devoted to the production, whether on commercial scale or not of energy for consumption in Puerto Rico, through the use of natural gas or coal, or through the use of renewable sources, including but without being limited to: solar energy, wind energy, geothermal energy, ocean thermal energy, ocean kinetic energy, hydroelectric energy, biomass or hydrogen or solid waste, recovery of methane through the use of high technology to produce energy at competitive costs, including but not limited to alternate thermal conversion technology. Three (3) years after the approval of this act, the energy generated with fossil or nonrenewable resources shall not be eligible. Units in participating public or public-private consortiums whose main objective is that which is mentioned in this paragraph shall be included in this clause.
(I) Any of the recycling activities defined hereinafter:
(i) Partial recycling activities.— Recycling activities that carry out at least two or more of the following processes: collection, distribution, reconditioning, shredding, pulverization or other physical or chemical process that transforms articles of recyclable materials or recyclable materials as defined in § 1320(o) of Title 12, and recovered in Puerto Rico, in raw material, aggregates for the manufacture of a product, that prepare the material or product for its local sale or use or export, and that locally sell or use or export the material processed or the product for its future use or recycling.
(ii) Total recycling activities.— Transformation into commercial articles of recyclable material that has been recovered mainly in Puerto Rico, provided that said activity contributes to the objective of promoting the recycling industry in Puerto Rico.
(J) Planting and harvesting through hydroponics process, as well as the intensive growing of mollusks, crustaceans, fish or other aquatic organisms through the aquaculture process, the milk pasteurization process and the agricultural biotechnology processes provided that these operations are conducted pursuant to the norms and practices approved by the Department of Agriculture of Puerto Rico.
(K) Value added activities pertaining to the operation of the Puerto de las Américas, the port located in the old Roosevelt Roads Base and the ports of Mayagüez, Yabucoa, San Juan, Guayama and any other port designated by the Secretary of Economic Development through regulations or other official communication such as: storage, consolidation of merchandise and dispatch thereof, repacking of consolidated parcels for shipment from said ports, the completion of semi-processed products for delivery to regional markets and any other commercial or service activity related to the administration or management of goods or end, semi-processed or manufactured products that are associated with, are part of, or move through said ports.
(L) Development of licensed or patented programs or software that can be reproduced on a commercial scale. Provided, however, That in the case that said eligible business is operating in Puerto Rico prior to submitting the application, the limitations established in § 10643(f) of this title shall be applicable.
(M) Assembly of equipment to generate energy from renewable sources.
(N) The research, development, manufacture, transportation, launching, operation from Puerto Rico of satellites and service development centers for the processing and storage of data, excluding telephone, radio and television broadcasting operations.
(O) Strategic projects, as said term is defined in subsection (p) of this section.
(P) The licensing of intangible property developed or acquired by the tax-exempt business that holds a decree under this chapter.
(Q) Any industrial entity that produces purified bottled water that complies with the norms for purified water of the U.S. Food and Drug Administration and the U.S. Pharmacopeia 23rd Revision Code, using processes that result in physical and chemical changes to the original water including reverse osmosis, recovery of reverse osmosis and injection of minerals, among others. Provided, however, That these industries shall be eligible only to receive the benefits provided in § 10645 of this title.
(R) The construction of affordable housing and the planning and development of self-sustaining or partially sustaining communities. For the purposes of this paragraph, the term “self-sustaining community” shall mean the development of housing projects with the capacity to supply their own energy, water and solid waste management needs. For the purposes of this paragraph, the term “partially sustainable” means the development of housing with capacity to supply seventy-five percent (75%) or more (computed on the basis of a daily consumption average of two hundred fifty (250) gallons per family) of its water needs, the development of their own sanitary infrastructure, the management of solid waste pursuant to the laws and regulations in effect and the use of alternative energy production techniques to supply at least the common areas of the housing project.
In the case of the construction of affordable or private housing, the prior endorsement of the Department of Housing shall be required. The Department of Housing of Puerto Rico shall consider and make a determination on an application for endorsement filed pursuant to the provisions of this paragraph within a term of forty-five days (45) computed as of the date of receipt of the application.
If its determination is not received within the terms provided above, as applicable, said application shall be considered approved.
The alternative energy production equipment shall be certified to such effects and to the effects of its operation in the site installed by an electrical engineer or by a master electrician, both of whom shall be members of their respective colleges and licensed pursuant to the provisions in the respective laws that regulate the practice of these profession and that have specialized knowledge on the installation of distributed generation equipment based on any type of renewable energy, said professional being registered at the Administration of Energy Affairs of Puerto Rico, accompanied by a certified copy issued by the College of Engineers and Surveyors of Puerto Rico or by the Puerto Rico Expert Electricians College, as the case may be, and a copy of their license to practice the profession of electrical engineer or expert electrician. For the duration of the tax benefit, the equipment installed shall be inspected and certified annually by one of the abovementioned professionals and a copy of this certification shall be part of his/her eligible business income statement in order to receive the credits for which they qualify.
(2) Excepting the provisions of § 10653 of this title on renegotiations and conversions, any applicant who receives tax benefits or incentives under any other special law of the Commonwealth of Puerto Rico that are similar to those provided in this chapter, as determined by the Executive Director, shall not be considered as an eligible business under this chapter with respect to the activity for which he/she enjoys said tax benefits or incentives.
(e) Production on a commercial scale.— Production for sale in the market in the normal course of business, in quantities and at prices that justify the operation of an eligible business as a running business.
(f) Manufactured product.— Shall include products transformed from raw materials into commercial articles, articles designated under preceding tax incentive laws, and any other product with respect to which substantial industrial operations are conducted in Puerto Rico that in the judgment of the Executive Director warrant that they be considered as manufactured products under this chapter due to their nature and extension, required technology, the substantial employment provided or any other benefit that the operation represents for the welfare of Puerto Rico.
A tax-exempt business that holds a decree granted under this chapter may subcontract the production in Puerto Rico of one or several components or products, or one or more manufacturing processes, or services related to said processes of products covered under their decree or key functions needed for their operation and the subcontractor shall also qualify as a tax-exempt business, provided the Secretary of Development determines that said subcontracting shall result in the best interests of Puerto Rico, in consideration of the factors set forth in the first paragraph of this subsection.
(g) Industrial unit.—
(1) Plant, factory, machinery or set of machinery and equipment with capacity to conduct the main functions used in the production of a product manufactured on a commercial scale, even when it uses in common with other industrial units, certain facilities of lesser importance such as buildings, power plants, warehouses, conductors of materials or other facilities for productions of lesser importance, or that conduct some industrial operations outside of said industrial unit.
(2) An industrial unit may use in common with other industrial unit facilities of greater importance when the Secretary of Development determines that said use in common is necessary and convenient for the industrial and economic development of Puerto Rico in view of the nature of the operations, of the additional investment and of the number of employments generated.
(3) Any tax-exempt business that holds a decree granted under this chapter that establishes an eligible business to manufacture a separate or different from that produced by said tax-exempt business with the machinery and equipment needed for an efficient operation, in addition to any other operation that has enjoyed or that is enjoying an exemption, with an accounting system that clearly reflects the operations of said eligible business in accordance with the generally accepted accounting principles.
(h) Services designated for foreign markets.— The services designated shall include the following economic activities:
(1) Commercial and mercantile distribution including the export of products manufactured in Puerto Rico.
(2) Investment banking and other financial services including but not limited to services of:
(A) Asset management;
(B) alternate investment management;
(C) management of private capital investment activities;
(D) management of hedging funds or high risk funds;
(E) pools of capital management;
(F) administration of trusts that serve to covert different groups of assets into securities, and
(G) escrow accounts administration services.
(3) Publicity and public relations.
(4) Economic, environmental, technologic, scientific, managerial, marketing, human resources, computer engineering and auditing consulting services.
(5) Commercial arts and graphic services.
(6) Assembling, bottling and packing operations.
(7) Electronic data processing centers.
(8) Port facilities, both air and maritime.
(9) Repair and general maintenance of maritime and air vessels, as well as machinery and equipment including electric, electronic and timepiece equipment.
(10) The production of construction blueprints, as well as engineering and architectural designs and related services.
(11) Marketing centers devoted mainly to promote, through lease fees for services or other type of fees, space and services such as: secretarial, translation and data processing services, communications, marketing, telemarketing and other consulting services for enterprises devoted to or otherwise related to the purchase and export of products or rendering of services to markets outside of Puerto Rico, including export and marketing companies, aggregate and commercial consulates, government agencies responsible for foreign trade, barter and product and services exhibition centers.
(12) Corporate headquarters devoted to rendering centralized managerial services, including the administration or strategic and budgetary planning for affiliated entities.
(13) Companies devoted to international trading companies.— For the purposes of this section, international trading companies shall mean entities that derive not less than eighty percent (80%) of their gross income:
(A) From the purchase of products manufactured in or outside of Puerto Rico and the resale of such products for their use, consumption or disposition outside of Puerto Rico, and
(B) from commissions derived from the sale of products for their use, consumption or disposition outside of Puerto Rico; Provided, That no part of the income derived from the sale or resale of products for their use, consumption or disposition in Puerto Rico shall be deemed to be industrial development income.
(14) The development of general application, licensable custom-made software.
(15) General educational and training services.
(16) Medical hospital care services, including reference laboratory tests and services through telemetry.
(17) Strategic and organizational planning of processes, distribution and logistics.
(18) Shared services center.— For purposes of this section, the term “shared services center” refers to a unit engaged in rendering centralized services in accounting, finances, taxes, auditing, marketing, engineering, quality control, human resources, communications, electronic data processing, and other centralized management services, to affiliated entities.
The Secretary of Development, with the previous favorable recommendation of the Executive Director and the Secretary of the Treasury, may designate, through regulations, other services whose inclusion in this chapter is warranted, when he/she determines that such a designation shall serve the best interests and the economic and social well-being of Puerto Rico, in considering the demand that might exist for those services outside of Puerto Rico, the total number of jobs to be created, the payroll, and the investment that the service unit would make in Puerto Rico, or any additional factor for which special consideration is warranted.
(i) Small or medium business.— Any tax-exempt business that holds a decree granted under this chapter, which generates an average gross income of less than ten million (10,000,000) dollars during the three (3) preceding taxable years. In order to determine the annual average gross income, the computation shall include all kinds of income, whether covered or not by an industrial tax exemption decree.
(j) Income from eligible activities.—
(1) The interest and dividends on eligible funds invested by the exempt business in:
(A) Loans for the financing of the construction, acquisition or improvements to housing units in Puerto Rico;
(B) loans for the construction, expansion or acquisition of buildings or land, and for the acquisition of machinery and equipment or for operating capital used in tax-exempt businesses. The borrowing tax-exempt business or the borrowing legal entity which is part of a same tax-exempt business shall not qualify for the benefits of this subsection with respect to those investments the same makes, up to the amount of the unpaid balance of its loans for operating capital;
(C) loans for the acquisition of intangible property to be used by tax-exempt businesses in the course of their operations in Puerto Rico, as well as for the financing of activities such as research, experimentation and development of new products or industrial processes or the improvement thereof, carried out in Puerto Rico;
(D) obligations issued by the Conservation Trust of Puerto Rico and the Housing and Human Development Trust of Puerto Rico, provided that when issuing said obligations, the Secretary of the Treasury has not revoked his/her determination that these are nonprofit trusts, pursuant to the terms and conditions established by the Commissioner;
(E) preferred stocks or capital obligations as authorized by §§ 1 et seq. of Title 7, known as the “Puerto Rico Banking Law”, as well as capital obligations issued by financial institutions, provided the amount of the capital raised through the preferred stocks or capital obligations issued is invested in Puerto Rico, pursuant to the terms and conditions established by the Commissioner;
(F) obligations issued by any subsidiary of the Farm Credit Banks of Baltimore, or by its successor, AgFirst Farm Credit Bank, engaged in directly or indirectly financing agricultural loans with said funds, as well as farmers in Puerto Rico, including loans to rural residents to finance rural housing; loans to credit unions owned and controlled by farmers and engaged in the marketing or distribution of agricultural products, the purchase of materials, the rendering of services to agricultural businesses, and the acquisition of loans or discounts on notes already granted;
(G) loans for financing maritime and air operations directly related to commerce and industry in Puerto Rico, including, without it being construed as a limitation, the money used in the construction, acquisition and operation of all kinds of vessels, seacraft or aircraft;
(H) stocks from corporations or shares in partnerships that own or operate tourist businesses exempted under §§ 6001 et seq. of Title 23, known as the “Puerto Rico Tourism Development Act of 1993”, which constitute an eligible investment pursuant to § 6001(n) of Title 23;
(I) stocks from corporations or shares in partnerships that are established as Investment Capital Funds under §§ 1241 et seq. of Title 7, known as the “Investment Capital Fund Act of Puerto Rico”, provided the Fund invests at least twenty percent (20%) of the total contributions received in tourism activities;
(J) loans for the financing of any of the Strategic Projects, as said term is defined in subsection (p) of this section, and
(K) any other obligations or loans as the Commissioner may designate, with the approval of the public sector members of the Financial Board and the Executive Director. The Commissioner is hereby authorized to issue regulations as necessary for the administration of this subsection, with the approval of the public sector members of the Financial Board and the Executive Director.
(L) obligations issued by the Puerto Rico Education and Rehabilitation Society (SER de Puerto Rico); provided, that it obtains and maintains an exemption under Section 1101.01 of Act No. 1-2011, as amended, known as the “Internal Revenue Code for a New Puerto Rico.”
(2) The interest on eligible funds deposited or invested by the tax-exempt business that holds a decree granted under this chapter, in institutions engaged in the banking business, including the Puerto Rico Economic Development Bank, loan and savings associations, savings banks, securities brokerage firms and other similar institutions conducting business in Puerto Rico, which the Commissioner, with the approval of the public sector members of the Financial Board and the Executive Director, determines to be institutions that are eligible to receive such eligible funds. The regulations on eligible institutions shall see, among others, to the canalization of funds toward activities that boost production, income and employment in Puerto Rico, such as commercial, industrial, agricultural, construction, or natural resource conservation loans.
(3) The regulations issued under equivalent provisions in preceding laws shall continue to be in effect and apply to investments under this chapter, until the Commissioner, with the approval of the Financial Board and the Executive Director, amends or repeals said regulations or issues new regulations specifically for funds invested under this chapter.
(4) In the event that the Commissioner determines that an institution is no longer eligible to receive said funds, such a determination shall not prevent the interest earned thereon, invested before the institution lost its eligible status, from continuing to be considered as eligible interest under this chapter until the maturity of said investment.
For purposes of this subsection, the term “eligible funds” shall include funds generated in the industrial or service activity, covered by the exemption decree under this chapter (including taxable years covered by the option under § 10650(b) of this title) or under similar provisions in preceding tax incentives laws.
(k) Preceding tax-exempt business.—
(1) Any business that enjoys or has enjoyed exemption under this chapter or under preceding tax incentives laws for carrying out an economic activity that is substantially similar to that which is specified in the decree of a succeeding business, and
(2) twenty-five percent (25%) or more of its stocks issued and outstanding, or other property interest, is or has been owned by the succeeding business or by any of the stockholders or owners of the succeeding business, who own twenty-five percent (25%) or more of the stocks or other property interest of the succeeding business. This last requirement shall not apply when referring to preceding tax-exempt business in § 10656(a)(4) of this title.
(A) The holding of stocks or other property interest shall be determined pursuant to the rules concerning the holding of corporate stocks or partnership shares under Subtitle A of the Puerto Rico Internal Revenue Code.
(B) If any of the stockholders or owners of a succeeding business is affected by said rules and is able to prove, to the satisfaction of the Secretary of the Treasury, that the capital invested or to be invested in the succeeding business is not directly or indirectly derived from their spouses, straight-line ascendants or descendants, or siblings, but rather, that it is derived from his/her own financial means, such rules shall not apply.
(l) Succeeding business.— Any business that obtains a decree under this chapter to carry out an economic activity that is substantially similar to that which is specified in the decree of a preceding tax-exempt business.
(m) Industrial tax exemption decree.— This shall have the same meaning as “exemption decree”, “tax exemption”, or merely, “exemption” or “decree”, which terms may be used indistinctively, as may be convenient, for purposes of illustrating that which the text provides.
(n) Extraordinary circumstances.— Any cause of an exceptional nature, such as strikes, wars, actions of Government or of the elements, fires and others, or any other cause beyond the control of the tax-exempt business.
(o) Intangible property.— Patents, inventions, formulas, processes, designs, patterns, know-how, copyrights, trade secrets; literary, musical or artistic compositions; trademarks, factory seals, trade names, brand names, franchises, licenses, contracts, methods, programs, systems, procedures, goodwill, campaigns, surveys, studies, trials, projections, estimates, client lists, technical data, or any other similar property.
(p) Strategic projects.— The following units participating in public-private consortiums shall be considered to be strategic projects for purposes of this chapter:
(1) The cleaning, recovery, conversion and restoration of garbage dumps that have been closed down in Puerto Rico, including activities to recover methane and cleaning aquifers;
(2) the construction of reservoirs and/or dams, including any infrastructure needed for their operation, with the purpose of increasing storage and reserves, and safeguarding the value of water production by the Aqueduct and Sewer Authority and the production of hydroelectric energy; and for the construction of used water treatment plants;
(3) the construction of power-producing plants that use fuels other than oil and renewable sources. Provided, That as of the third year of the effectiveness of this act, any plant that applies for the benefits of this chapter under this clause shall operate on renewable sources, and as of the sixth year of effectiveness of this act, any plant that starts operations pursuant to the provisions of this clause, must operate on renewable sources, and
(4) the construction of mass transportation systems, including but not limited to railroad mass transportation systems.
(q) Local investment business.— An eligible business of which at least fifty percent (50%) belongs directly to individuals residing in Puerto Rico.
(r) Community enterprises.— An organization, corporation, workers’ corporation, production cooperative, or business initiative that, in addition of producing goods, has a social and economic impact within the community where the same is located and which meets the requirements that the Executive Director may establish through regulations.
(s) Definitions of other terms.— For the purposes of this chapter:
(1) Governor.— Means the Governor of the Commonwealth of Puerto Rico.
(2) Secretary of Development.— Means the Secretary of the Department of Economic Development and Commerce.
(3) Executive Director.— Means the Executive Director of the Industrial Development Company.
(4) Director.— Means the Director of the Industrial Tax Exemption Office.
(5) Commissioner.— Means the Commissioner of Financial Institutions, created by §§ 1402 et seq. of Title 7.
(6) Financial Board.— Means the Financial Board attached to the Office of the Commissioner of Financial Institutions, created by §§ 1402 et seq. of Title 7.
(7) Tax Exemption Office.— Means the Industrial Tax Exemption Office.
(8) Puerto Rico Internal Revenue Code.— Means the Puerto Rico Internal Revenue Code of 1994, Act No. 120 of October 31, 1994, or any subsequent law which may replace the same.
(9) Federal Internal Revenue Code.— Means the Federal Internal Revenue Code of 1986, P.L. 99-514, 68A Stat. 3, as amended, or any subsequent law which may replace the same.
(t) Stocks.— Shall mean the stocks in a corporation or interests in a limited-liability company or partnership.
(u) Energy from renewable resources.— Shall mean the energy generated from solar, wind, geothermic, ocean thermal, ocean kinetic, or hydroelectric energy, or from biomass, hydrogen, solid waste, and methane recovery, among other similar sources.
(v) Regional initiatives.— Means alliances between municipalities, businesses established in the region and universities, in order to foster the development of a particular region, being these incorporated as nonprofit entities as authorized under §§ 4001 et seq. of Title 21, better known as “Puerto Rico Autonomous Municipalities Act”. This definition includes the following: Center-Western Technological Initiative (INTECO, Spanish acronym), Northern Technological Initiative (INTENOR, Spanish acronym), Northeastern Technological Initiative (INTENE, Spanish acronym), Southern Integrated Development (DISUR), and the Technological-Economic Corridor (PR-TEC, Spanish acronym). This definition also includes other similar initiatives of municipal governments to incorporate regions and to promote their development through alliances among municipalities, the private business sector and academia.
All other terms employed in this chapter, unless specifically provided otherwise, shall have the same meaning they have in the Puerto Rico Internal Revenue Code and the regulations thereunder.
Notice This section has more than one version with varying effective dates. First of two versions of this section.
History —May 28, 2008, No. 73, art. 1, § 2, eff. July 1, 2008; Aug. 16, 2012, No. 179, § 5; Feb. 27, 2014, No. 32, § 4.