P.R. Laws tit. 23, § 7008
Any person who owns an eligible property subject to the Reasonable Rental Act located in the Río Piedras Ward, who substantially rehabilitates said eligible property, and after doing so, the said property continues to be subject to the provisions of said act, shall be entitled to a special deduction when computing his/her net income for income tax purposes, equivalent to the difference between the adjusted rent, as defined in this chapter, and the basic rent, as defined in § 6 of Act No. 464 of April 25, 1946. In the case of structures partially subject to the Reasonable Rental Act, only the rehabilitation works made to the portion of the structure subject to said Act shall be considered, and the cost thereof shall be adjusted pursuant thereto. In order to be entitled to the deduction established herein, it shall be necessary for the eligible property’s rehabilitation to be initiated and concluded within the period comprised between the effective date of this act and the fifth year after the effectiveness of this act, and to be valued in an amount that exceeds twelve thousand dollars ($12,000) per unit or which represents thirty percent (30%) of the property’s market value before its rehabilitation, excluding the value of the land where it is located, whichever is greater.
In order to determine the total amount of the deduction granted herein, the Secretary of Consumer Affairs shall issue a certificate indicating the basic rent established by unit and its adjusted rent. This certificate shall be submitted to the Secretary of the Treasury by the person entitled to the deduction in order to enjoy the same. The rents indicated in said certificate shall be the sole grounds to be used in determining the amount of the deduction granted herein.
The deduction granted herein shall not exceed four thousand, eight hundred dollars ($4,800) per unit by year, and, may only be claimed while the unit is leased by the tenant who was leasing the property before the rehabilitation of the unit, and for a maximum term of ten (10) years from the date the rehabilitation was completed.
History —July 5, 1995, No. 75, § 7.