P.R. Laws tit. 23, § 11002a-1
In the evaluation, analysis, consideration, award, renegotiation, and revision of any incentive or benefit granted under this chapter, the Secretary of Economic Development shall be required to oversee and ensure compliance with the following governing principles as provided below:
(a) Jobs.— The incentivized activity and the grantee promote the creation of new jobs.
(b) Sound integration.— The conceptual design and planning of the incentivized activity shall be carried out, first of all, taking into account environmental, geographical, and physical aspects as well as the materials and goods that are abundantly available in the site where it is to be developed.
(c) Commitment to economic activity.— The grantee acquires raw materials and products manufactured in Puerto Rico for the construction, maintenance, renovation or expansion of the physical facilities thereof. If the purchase of said products cannot be financially justified when taking into account criteria such as the quality, quantity, price, or availability of these products in Puerto Rico, the Secretary of Economic Development may issue a certificate attesting to such fact.
(d) Commitment to agriculture.— The grantee acquires agricultural products of Puerto Rico for the operation thereof. If the purchase of said products cannot be financially justified when taking into account criteria such as the quality, quantity, price, or availability of these products in Puerto Rico, the Secretary of Economic Development may issue a certificate attesting to such fact.
(e) Transfer of knowledge.— The grantee acquires services from professionals or companies with a presence in Puerto Rico. However, if this is not possible due to criteria such as availability, experience, specificity, or skill or any other valid reason recognized by the Secretary of Economic Development, the grantee may acquire such services through an intermediary with a presence in Puerto Rico, which shall contract directly with the service provider chosen by the grantee, in order to receive the requested services.
The term “services” includes, but such list shall not preclude the Secretary of Economic Development from including others by regulations, the contracting of jobs relating to:
(1) Surveying, the production of construction plans, as well as engineering and architectural designs, and related services;
(2) construction and all that pertains to this sector;
(3) financial, environmental, technological, scientific, management, marketing, human resources, and auditing consulting services;
(4) advertising, public relations, commercial art, and graphic design services; and
(5) security or facility maintenance.
(f) Financial commitment.— The grantee shall submit proof that he uses the services of and that he deposits a significant amount of the income derived from his economic activity in banking and/or cooperative institutions with a presence in Puerto Rico. If the financial activity cannot be financially justified when taking into account criteria such as the availability or accessibility of these institutions in Puerto Rico, the Secretary of Economic Development may issue a certificate attesting to such fact.
The Secretary of Economic Development shall be the sole official responsible for verifying and ensuring that exempt businesses meet the eligibility requirements established in this section and this chapter.
If the grantee partially meets the requirements established in this section, the Secretary of Economic Development shall be required to establish a formula that allows for the quantification of the aforementioned factors, and for the subtraction of the requirements that have not been met from the total percentage of the specific credit, in order to obtain the exact percentage of the benefit in question.
The governing principles established in this section shall apply to every incentivized activity or new business that applies for any of the benefits awarded under this chapter after January 1st, 2016. However, the provisions of this section shall apply to any application for renegotiation and/or conversion of a decree submitted by any grantee that has not been signed and completed prior to such date.
History —March 4, 2011, No. 27, added as § 3.2-A on Dec. 28, 2016, No. 208, § 27.