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Mission and Vision
STATUTES & REGULATIONS
Applications & Filing Fees
Sworn Statement & Notifications
Terms and Conditions
The Industrial Incentives Program was created by virtue of Act No. 184 of May 13, 1948 in order to foster the industrial development in Puerto Rico and achieve the transformation from an agrarian to an industrial economy. However, it was not until the adoption of Act No. 6 of December 15, 1953, that the Office of Industrial Tax Exemption (OITE or Office) was created as the body in charge of administering such incentives program, becoming the responsible for the administrative processes related to the submittal and granting of tax exemption decrees.
Act No. 6 of December 15, 1953 created and established OITE as a body directly responsible to the Governor. This Act, like the laws that immediately followed (Act No. 57 of June 13, 1963, Act No. 26 of June 2, 1978 and Act No. 8 of January 24, 1987), provided that the Governor should, by and with the advice and consent of the Senate, appoint OITE’s Director. At the same time, it provided that OITE’s Director could appoint the personnel necessary to carry out the provisions of the Act, while empowering the Office to draft such rules and regulations necessary to carry out the purposes of the Act. Both under Act No. 6 of December 15, 1953, as under Act No. 57 of June 13, 1963, Act No. 26 of June 2, 1978 and Act No. 8 of January 24, 1987, the authority to grant industrial tax concessions resided in the Governor of Puerto Rico.
Later, with the approval of Act No. 218 of October 27, 1995, it is established that the OITE should be ascribed to the Department of State. In addition, it is provided that the Office would be directed and managed by a Director who would be appointed by the Secretary of State with the consent of the Governor. The Director would exercise the powers, perform the duties and fulfill the obligations imposed by such law and appoint the personnel necessary to carry out the provisions of the Act. Under Act No. 218 Law of October 27, 1995, the Department of State would provide to the OITE the necessary administrative support to fulfill its functions. In addition, the Secretary of State would have the power to grant industrial tax concessions.
Then, upon the approval of Act No. 135 of December 2, 1997, OITE continues been ascribed to the Department of State and headed by a Director, who, like under Act No. 218 of October 27, 1995, is appointed by the Secretary of State, with the consent of the Governor. However, although the Director would exercise the powers, perform the duties and fulfill the obligations imposed by such law, the Secretary of State was the one who would appoint the necessary personnel and administer the Office. In addition, the Secretary of State was the one who had the power to grant industrial tax concessions.
Finally, Act No. 73 of May 28, 2008, known as the “Economic Incentives Act for the Development of Puerto Rico”, is, currently, the tool that governs the industrial tax incentives program, making possible the establishment and development of industries in order to make them contribute to the industrial and economic growth of the island. This Act provides that the OITE will be ascribed to the DDEC and that the Office will be directed and managed by a Director who shall be appointed by the Secretary of the Department of Economic Development and Commerce. It further provides that the Director shall exercise the powers inherent to the charge, appoint the personnel necessary to carry out his or her functions and fulfill the duties and obligations that this law imposes. Under Act No. 73 of May 28, 2008, the authority to grant the tax concessions resides in the Secretary of the Department of Economic Development and Commerce.