P.R. Laws tit. 23, § 6014
(a) Renegotiation.— Any eligible tax-exempt business under §§ 10001 et seq. and §§ 10012 et seq. of Title 13 or §§ 693 et seq. of this title may petition for the renegotiation of its exemption decree to avail itself of the benefits granted under this chapter:
(1) If it meets the requirements of this chapter, including but without being limited to the substantial renewal referred to in § 6001(g) of this title and any other condition that the Director may impose in the exercise of his/her power under this chapter;
(2) if the Director determines, with the prior favorable recommendation of the Secretary, that the renegotiation of said exemption decree will result in the best social and economic interests of Puerto Rico;
(3) if it waives for revocation its right to the tax exemption decree or resolution approved for said eligible business under §§ 10001 et seq. and §§ 10012 et seq. of Title 13, or §§ 693 et seq. of this title, and obtains a certificate crediting said waiver in order to enjoy the incentives of the present chapter, from the Director of the Office of Industrial Tax Exemption with regard to exemptions granted under §§ 10001 et seq. and §§ 10012 et seq. of Title 13, or from the Secretary if it is granted under §§ 693 et seq. of this title, and
(4) if it encloses the certificate mentioned in the above clause (3) with a duly-filed petition.
(b) Duration of the renegotiated exemption decree.— Any eligible business that has availed itself of the option under subsection (a) of this section shall enjoy the benefits of this chapter for the period established by law.
(c) Distribution of the profits.— When an eligible business that chose to renegotiate its tax exemption decree or resolution, distributes the profits accrued under its previous exemption decree after the effective date of the grant, such distribution shall be made pursuant to the provisions of the exemption decree or resolution granted under §§ 10001 et seq. and §§ 10012 et seq. of Title 13, or §§ 693 et seq. of this title.
(d) Distributions in liquidation.— Any eligible business that chooses to renegotiate its tax exemption decree or resolution shall pay taxes at the time of its total liquidation, with regard to its tourist development income, pursuant to the provisions of this chapter, and with regard to the income accrued prior to the effective date of the grant, pursuant to the provisions of the exemption decree or resolution approved under §§ 10001 et seq. and §§ 10012 et seq. of Title 13, or §§ 693 et seq. of this title.
(e) Net operating losses.— Any net operating loss incurred by an exempted business during the period in which it operated under a tax exemption decree or resolution granted under §§ 10001 et seq. and §§ 10012 et seq. of Title 13, or §§ 693 et seq. of this title, shall be divided in tax-exempted and unexempted losses. After making this division, the unexempted losses may be used as provided in § 6011(a)(1)(G)(i) of this title; the exempted losses may be used as provided in § 6011(a)(1)(G)(ii) and (iii)(I) of this title. Losses generated in a year in which a choice is in effect similar to that provided in § 6011(a)(1)(D) of this title, may be used as provided in § 6011(a)(1)(G)(iii)(II) of this title.
(f) Coordination with the Puerto Rico Tourism Development Act of 2010.— No applications for renegotiation provided in this chapter shall be accepted after the effective date of the Puerto Rico Tourism Development Act of 2010, §§ 6341 et seq. of this title.
Any renegotiation application under this chapter that has been filed before the effective date of the Puerto Rico Tourism Development Act of 2010 shall be deemed to be an application filed pursuant to the Puerto Rico Tourism Development Act of 2010. The Director may request additional information regarding said application as he/she may deem pertinent.
History —Sept. 10, 1993, No. 78, § 6; July 10, 2010, No. 74, § 18.