In Brief: Permanent Puerto Rico tax credit
This article was originally published in The Gray Sheet
Executive Summary
Permanent Puerto Rico tax credit: Targeted wage-based credit for companies doing business in Puerto Rico would be made permanent unless certain economic goals were met under legislation (S 906) introduced June 16 by Sens. Alfonse D'Amato (R-N.Y.), John Chafee (R-R.I.), John Breaux (D-La.), Orrin Hatch (R-Utah) and Bob Graham (D-Fla.). Sec. 30a of the tax code would also be expanded to cover companies seeking to locate or expand their activities in Puerto Rico. Sec. 30a was established in the 104th Congress' phase-out of the Sec. 936 tax credit for economic activities in Puerto Rico and other territories that limited the credit to companies already claiming wage-based 936 credit. Both wage-based and income-based credits would be eliminated after Jan. 1, 2006 under current law...