P.R. Laws tit. 13, § 10835
(a) Deduction and net operating loss carryover.— Distributions described in subsection (a) of this section shall be excluded from:
(1) Deduction for ongoing loss incurred in activities not covered by a decree.— If an eligible business that holds a decree granted under this chapter incurs in net operational losses not attributable to the operation covered by the decree, the same shall not be used against income from operations covered by a decree under this chapter and shall be governed by the provisions of the Code.
(2) Deduction for ongoing loss incurred in the operation of the eligible business.— If an eligible business that holds a decree granted under this chapter incurs in net operational losses covered by the decree, the same shall only be used against other income from operations covered by a decree under this chapter.
(3) Deduction for loss carried over from previous years.— A deduction for loss incurred in previous years shall be granted as provided below:
(A) The excess over losses deductible under subsection (a)(2) of this section shall be carried over against income from the export of services of subsequent taxable years. The losses shall be carried over in the order in which they were incurred.
(B) Once the term of the decree has expired for the purposes of income tax, net losses incurred in the operation covered by the decree, as well as any excess of the deduction allowed under subsection (a)(2) of this section that the eligible business is carrying over as of the date of expiration of said term, may be deducted against any taxable income in Puerto Rico, subject to the limitations provided in Subtitle A of the Code. Said losses shall be deemed as incurred in the last taxable year in which the eligible business that holds a decree under this chapter enjoyed the rate established in § 10832 of this title, in accordance with the terms of the decree.
(C) The amount of net operational loss to be carried over shall be calculated pursuant to the provisions of § 30134 if tis title.
History —Jan. 17, 2012, No. 20, § 7;, renumbered as § 8 on July 11, 2012, No. 138, § 6.