San Juan, .- The Committee on Finance, Budget and Supervision, Administration and Economic Stability of Puerto Rico today resumed evaluating the House Bill 1635, which will establish the new “Code of Incentives of Puerto Rico”, which proposes to consolidate incentives for economic development.
This measure, presented by the Governor of Puerto Rico, Ricardo Rosselló, not only unifies over 50 monetary stimulus laws, but also incorporates the alternative of applying for them through tax credits.
In addition, it creates the legal and administrative framework that will govern the request, evaluation, concession or denial of incentives by the Government of Puerto Rico.
The Secretary of the Department of Economic Development and Commerce of Puerto Rico, Manuel Laboy, stressed that the new Code of Incentives seeks to reform the management of all economic incentives on the island.
And as part of the new changes, he mentioned the sectors of agroindustry, manufacturing, creative industries, visitor economy, entrepreneurship and individuals, among other industries.
“We propose to encourage activities that produce a return on positive investment for Puerto Rico,” he said.
He also mentioned that the new Code harmonizes tax rates across industries, although it does include certain exceptions, including 4% in the rate of contribution on income and 2% for five years for small and medium-sized enterprises with income of 3 million dollars per year and businesses established in the islands-municipalities of Vieques and Culebra.
He also mentioned 60% of the municipal patent exemption and 0% in the dividend distribution rate.
Regarding agro-industry, Laboy said that the tax rate applicable to bonafide farmers is reversed for a 90% tax exemption on income, instead of a fixed rate of 4%.
The bill also guarantees access to health by extending the validity of the “Law of Incentives for the Retention and Return of Medical Professionals”, which includes a program to repay student loans to doctors in exchange for their living in Puerto Rico. for seven consecutive years.
Likewise, it incorporates a five-year window for producers and sellers of natural gas energy to qualify for a decree.
In turn, the “Cuenta Mi Futuro” program is created, where the government establishes a savings account for each student who starts the Kindergarten degree in the public system.
Therefore, the Government of Puerto Rico will contribute $ 1,000 to said account and it will be available to the student when he / she graduates from the twelfth.
The funds of this account, which can only be used to start university studies or as capital to start your own business, will be invested according to the parameters established by the Financial Advisory Authority and Fiscal Agency of Puerto Rico. (EFEUSA)