Attorneys experienced in Puerto Rico's Act 60 & Business Law

Act 60 consolidates Puerto Rico’s tax incentive laws into a single code. It was approved in 2019 and replaced prior incentive laws. Its purpose is to encourage commercial activity, investment, job creation, and capital retention in Puerto Rico. 

Act 60 decree reduces income taxes, municipal taxes (patente), and property taxes (CRIM) for businesses that qualify under eligible activities. 

The Act 60 benefits are accessed through a tax exemption decree, which is a contract between the business/individual, the owner as the grantor, and the Government of Puerto Rico. It is not a contract with a specific administration. It carries constitutional protection and can last from 3 to 15 years, with the option to renew for an additional 15 years depending on the chapter. 

Act 60 tax credits provides access to government-issued certificates for qualifying investments in R&D, tourism, film, manufacturing, and opportunity zones. These tax credits can be accessed by having an Act 60 Decree. These credits can be applied against tax liability, sold to third parties, or reimbursed by Treasury. 

They can also be used as collateral for loans.

Act 60 created the Economic Incentive Fund (EIF) reimbursements. These are separate contracts  from Act 60 decrees. They are known as cash grants that provide reimbursements for qualifying expenditures on machinery, equipment, employees, infrastructure, marketing, and seed capital.