P.R. Laws tit. 23, § 11021
For purposes of this chapter, the following terms, phrases, and words shall have the meaning and scope stated below:
(a) Special job creation agreement.— An agreement between an eligible business and the Government whereby the eligible business commits to the creation of jobs and to other conditions, as applicable, in return for the applicable benefits provided in this chapter, which shall be specifically listed in such agreement. The agreements shall establish their effective term and shall expire when the benefits granted thereunder cease, pursuant to the provisions of this chapter and the agreements themselves.
(b) Eligible business.— Any natural or juridical person, including corporations, partnerships, limited liability companies, or any other entity or organization doing, or seeking to do business in Puerto Rico, regardless of its place of organization, whose main operations are not covered (receiving benefits) under any other Incentives Law, as defined in this chapter. Furthermore, such eligible businesses shall have a local capital investment of at least fifteen percent (15%), or shall deposit and keep one percent (1%), of its monthly gross sales generated in Puerto Rico every month in local banks and/or cooperative banks for a period of at least three (3) years. The term eligible business includes new businesses, expansions of existing business, and developing businesses.
(c) New business.— An eligible business that has not begun its main business operations (even if it has already been organized) at the time the special job creation agreement is signed. An eligible business operating through affiliates, or resulting from a business reorganization, as defined in the Internal Revenue Code of 2011, shall not be deemed to be a new business.
(d) Expansion of an existing business.— Includes an eligible business that has been operating as of December 31, 2012 and that: (1) made a capital investment equal to at least 25% of the book value of its assets to that date; (2) increased its number of full-time (forty (40) hours per week) employees, or seeks to increase such number by at least 20% between January 1, 2013 and June 30, 2014; or (3) made changes to its operation (such as adding products or a line of business) which, at the discretion of the Executive Director, constitutes an expansion of such existing business that shall benefit the economy of the community in which it operates without undermining the competitiveness of other existing businesses.
(e) Developing business.— Any microenterprise, small- or medium-sized business that is an eligible business and that, as of December 31, 2012, employs fifteen (15) people or less on a full-time or equivalent basis.
(f) Incentive law or laws.— Includes the following laws, as amended: the Tax Incentives Act of 1998, §§ 10101 et seq. of Title 13; the Economic Incentives Act for the Development of Puerto Rico, §§ 10641 et seq. of Title 13; the Puerto Rico Tourism Development Act of 2010, §§ 6341 et seq. of this title; the Puerto Rico Film Industry Economic Incentives Act, §§ 11001 et seq. of this title; the Green Energy Incentives Act, §§ 10421 et seq. of Title 13; the Act to Promote the Export of Services, §§ 10831 et seq. of Title 13; and §§ 371 et seq. of Title 13.
(g) Eligible incremental job.— The increase in the number of eligible employees after December 31, 2012, as such term is defined in this section, hired by the eligible business between January 1, 2013 and June 30, 2014.
(h) Eligible job or employee.— A regular, full-time employee (or its equivalent), as defined in this section. It shall not include employees working under contract who are recruited through employment agencies.
(i) Regular job or employee.— An individual who is a resident of Puerto Rico and is included in the eligible business” payroll. The number of regular employees shall include the number of individuals who work a full-time shift in the eligible business and/or “the number equivalent to full-time employees.” The number equivalent to full-time employees shall be calculated by adding the hours worked by employees who are not hired on a full-time basis and dividing the sum by 520 to determine the quarterly eligible incremental business, and by 162 to determine the monthly eligible incremental business.
(j) Eligible property.— A building or structure whose title deed is in the name of the Industrial Development Company or the Trade and Export Company, according to the list of eligible buildings previously identified by these public corporations. It shall not include land plots or lots with no structures thereon.
(k) Definitions of other terms—
(1) Government.— the Government of the Commonwealth of Puerto Rico and all its municipalities, instrumentalities, political subdivisions, agencies, and public or quasi-public corporations.
(2) Code.— Sections 30011 et seq. of Title 13, known as the “Internal Revenue Code of 2011,” or any subsequent law that supersedes it.
(3) Company.— the Puerto Rico Trade and Export Company.
(4) Authority.— the Electric Power Authority.
(5) Secretary of Development.— the Secretary of the Department of Economic Development and Commerce.
(6) Executive Director.— the Executive Director of the Puerto Rico Trade and Export Company.
(7) Secretary of the Treasury.— the Secretary of the Treasury of Puerto Rico.
(8) Act.— the “Jobs Now Act.”
History —Jan. 10, 2013, No. 1, § 1.3; July 5, 2013, No. 54, § 1; Dec. 26, 2013, No. 171, § 1.