INDUSTRIAL TAX EXEMPTION OFFICE.

LEGAL AUTHORITY

Act No. 135 of December 2, 1997, as amended, known as the Tax Incentives Law of 1998, created the Industrial Tax Exemption Office and abscribed it to the State Department. Act No. 73 of May 28, 2008, known as the Law of Economic Incentives for the Development of Puerto Rico, it is abscribed to the Department of Economic and Commercial Development.


MISSION

Grant tax exemptions in a viable way and in harmony with public policy to attract, establish, develop and retain the greatest number of industries; to create more and better direct and indirect jobs and contribute to the industrial and economic growth of Puerto Rico.


VISION

Administer the Law of Economic Incentives for the Development of Puerto Rico; making sure Puerto Rico continues to be a competitive location for local and global business.


ORGANIZATIONAL STRUCTURE

The following organizational units compose the Industrial Tax Exemption Office:

  • Administration Division
  • Legal Division
  • Executive Director's Office


GEOGRAPHIC LOCATION

The Industrial Tax Exemption Office is located in the Fomento Industrial Building, Office No. 105, on No. 355 F.D. Roosevelt Avenue, in Hato Rey.


PROGRAMMATIC STRUCTURE

POSITIONS FILLED

Authorized and Proposed Positions 2009 2010 2011 2012
Sept./08 Sept./09 Sept./10 Feb./11 Proj.

 

Total amount of positions 14 14 14 13 13

Data comes from the Agency's Certified Headcount Reports. Figures for Fiscal Year 2011-2012 were estimated during the budget formulation process.

PROGRAM

Tax Exemption Claims Evaluation

Program Description

Facilitates the establishment and development of industries to achieve industrial and economic growth of the Island through job creation. These efforts are achieved by granting tax exemptions as an incentive to create more jobs.

Objectives

  • Provides adequate entrepreneurial environment and economic opportunities needed to continue to develop the local industry; recognizing that the local entrepreneur is the building block of economic development, both now and for the future.
  • Offers an appealing tax incentive proposal that attracts direct foreign investment and matches those of competitive jurisdictions in the technology and value added industries.
  • Reduce the cost of energy by implementing alternate sources of renewable energy.
  • Audit files for evaluation of compliance using the Annual Report as reference.

Statistical Data 2010 2011 2012

 

Act 73 cases approved 83 110 130
Act 73 cases filed 123 125 150

Data obtained from Headcount Reports certified by the Agency. Figures for fiscal year 2011-2012 were estimated during the Budget formulation process.

Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 7 6 7 7
Judges, Lawyers, and Legal Staff 3 3 3 2
Planning, Budget, Statistics, Auditing, and Finance 3 3 3 3
Maintenance and General Services Staff 1 2 1 1
Total, Positions 14 14 14 13


FISCAL YEAR 2011-2012 ADOPTED BUDGET

The adopted consolidated budget for fiscal year 2011-2012 ascends to $990,000 from Revenues from Internal Sources. The Revenues from Internal Sources, originate from collection of funds through decrees and tax reforms.



SUMMARY OF AVAILABLE RESOURCES

Consolidated Budget  (thousands $) 2009 2010 2011 2012

 

Program  
Operational Expenses Actual Actual Budget Adopted
Tax Exemption Claims Evaluation 829 844 920 990
Subtotal, Operational Expenses 829 844 920 990
Total, Program 829 844 920 990
 
Funding Sources  
Operational Expenses  
Revenues from Internal Sources 829 844 920 990
Subtotal, Operational Expenses 829 844 920 990
Total, Funding Sources 829 844 920 990
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 677 692 727 797
Rent and Utilities 16 11 17 15
Purchased Services 99 112 133 134
Transportation Expenses 0 0 0 1
Professional Services 4 1 7 8
Other Expenses 11 6 5 7
Previous Years Debt Payments 0 14 0 0
Equipment Purchases 20 3 6 5
Office Supplies and other Materials 2 3 21 20
Advertising and Media Expenses 0 2 4 3
Subtotal, Operational Expenses 829 844 920 990
Total, Expense Category 829 844 920 990