Vol. 33 - February 2021 | ©2021 by Vidal, Nieves & Bauzá, LLC. All rights reserved. On February 23, 2021, the Puerto Rico Electric Power Authority ("PREPA") issued a Request for Proposals for Renewable Energy Generation and Energy Storage Resources ("RFP"). PREPA is currently one of the United States' largest public utilities by customers served, providing electricity to 1.5 million customers. The purpose of the RFP is to solicit proposals for (i) the design, construction, in

Vol. 32 - August 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. In volume No. 24 of our March 31, 2020 News and Alerts, we examined the potential effect of travel and mobility restrictions associated with the COVID-19 pandemic, on the Puerto Rico bona fide resident status of certain individuals. Shortly after the publication of our News and Alert, the President of the United States issued a notice of federal declaration of a major disaster for the Commonweal

Vol. 31 - June 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. BIn our News & Alert of April 3, 2020 we discussed the Employee Retention Tax Credit (“ERTC”) contemplated under the “Coronavirus Aid, Relief and Economic Security” commonly referred to as the CARES Act. In this edition we will discuss a tax credit available also for employers during the COVID-19 emergency enacted in the “Family First Coronavirus Response Act” (“FFCRA”) and some of the difference

Vol. 30 - June 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. Business owners in Puerto Rico and the United States are beginning to re-open after months of lockdown due to the COVID-19 pandemic. The re-opening of businesses represents a huge economic challenge since the losses in revenue affected the ability of many businesses to continue operating as they were doing so prior to the outset of the COVID-19 emergency. The United States Congress has made funds

Vol. 29 - May 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. The Puerto Rico Treasury has issued several administrative pronouncements containing guidelines for the temporary tax breaks applicable to distributions from qualified retirement plans and IRA´s for COVID-19 related expenses. The tax breaks apply to distributions of up to $100,000 from February 20 to June 30, 2020, which are used for COVID-19 emergency-related expenses or Special Disaster Distrib

Vol. 28 - April 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. The economic stimulus package recently approved by the United States Congress (P.L. 116, known as “The Coronavirus Aid, Relief and Economic Security (CARES) Act”), includes an important economic benefit for employers that retain employees on their payroll during the COVID-19 emergency. The economic benefit for employers affected by governmental closing orders is a fifty percent (50%) refundable t

Vol. 27 - April 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. Senate Joint Resolution 501 was introduced in the Puerto Rico Senate on March 28, 2020 (“SJR 501”). It was approved on the Senate Floor on March 31, 2020 and referred to the House Health Committee on that same day. It proposes to appoint ASES, --the Puerto Rico Health Insurance Administration responsible for overseeing the government´s health insurance plan known as “Vital”--, as the sole payor f

Vol. 26 - March 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. On March 30, 2020, the Municipal Revenue Collection Center (“CRIM”, by its Spanish acronym) issued Administrative Order No. 2020-04 whereby it announced a moratorium on the payment of interest, surcharges and penalties on real property tax payments which is in place until May 29, 2020. The order was issued in response to the Governor’s Executive Order OE 2020-29, which extended the lockdown and c

Vol. 25 - March 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. After the press conference offered by the Governor of Puerto Rico on March 24, 2020 to announce the first economic package to counter the Coronavirus (COVID-19) crisis in Puerto Rico, the Department of Treasury and other tax authorities issued the following guidelines: Administrative Determination 20-10 of March 24, 2020 (DA-2010) on Measures to Address Cash Flow for Taxpayers and Merchants befor

Vol. 24 - March 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. Puerto Rico and the United States have, with limited exceptions, either mandated or recommended people remain at home and maintain social distancing in order to attempt to slow down the number of persons infected with the Coronavirus (COVID-19). The rapid spread of the virus may require even more stringent measures, including domestic travel restrictions between the States in the mainland a

Vol. 23 - March 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. The Government of Puerto Rico issued several filing extensions, moratoriums and exemptions to tax requirements for business owners due to the COVID-19 outbreak.  The following is a summary of recent tax pronouncements related to the COVID-19 emergency.  Additional Puerto Rico tax pronouncements are expected as new developments on the COVID-19 virus arise. Income Tax Return and Income Tax

Vol. 22 - March 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. On March 15, 2020, Governor Wanda Vázquez Garced issued Administrative Bulletin No. OE-2020-23 (“Executive Order”) to implement a governmental and private sector operations closure in order to combat the effects of coronavirus (COVID-19) and to control the risk of infection in Puerto Rico. In view of the state of emergency declared under Administrative Bulletin No. OE-2020-020 of March 12,

Vol. 21 - February 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. On January 30, 2020, the Secretary of the Department of Economic Development and Commerce (“DDEC”) announced the publication of the first draft of the proposed “Regulation To Implement the Provisions of the Sections 6070.54-6070.69 of Act 60-2019, also known as the Incentives Code of Puerto Rico” (“Proposed Regulation”). The Proposed Regulation implements the provisions of the Incentives

Vol. 20 - January 2020 | ©2020 by Vidal, Nieves & Bauzá, LLC. All rights reserved. As Puerto Rico welcomed the New Year 2020, the government ushered on January 1st the implementation of Law No. 60 of 2019 known as the Puerto Rico Incentives Code (IC) in its entirety, as only parts of the law had become effective on July 2019 when it was approved. On January, 1st 2020 all the provisions of IC became effective, and would therefore group and govern all Puerto Rico cash and t

Vol. 19 - December 2019 | ©2019 by Vidal, Nieves & Bauzá, LLC. All rights reserved. On November 26, 2019, the Puerto Rico Treasury (“Treasury”) issued Circular Letter of the Internal Revenue Area No. 19-13 (“Circular Letter 19-13”). Circular Letter 19-13, in summary: 1) establishes additional guidelines related to the SUT exemption applicable to persons whooperate or act on behalf of theGovernment of Puerto Rico (i.e. Government Agent), pursuant to Section 4030.08 of th

Vol. 18 - August 2019 | ©2019 by Vidal, Nieves & Bauzá, LLC. All rights reserved. On July 1st, 2019, the Governor of Puerto Rico signed into law House Bill No. 1635, known as the “Incentive Code of Puerto Rico" and enrolled as Act No. 60-2019 (hereinafter the "Incentives Code").   The purpose of the bill was to consolidate all tax and monetary benefits conferred through separate statutes into a single code and eliminate tax incentives that were either obsolete or that had

Vol. 17 - January 2019 | ©2019 by Vidal, Nieves & Bauzá, LLC. All rights reserved. On October 22, 2019, Senate Bill No. 1121 was presented before the Legislature of Puerto Rico for the creation of the "Public Energy Policy Act of Puerto Rico". The Bill establishes the new public policy on energy of Puerto Rico in order to create the parameters for a resilient, reliable and robust energy system, with fair and reasonable rates for all classes of consumers, enabling the us

Vol. 16 - October 2018 | ©2018 by Vidal, Nieves & Bauzá, LLC. All rights reserved. On October 17, 2018, Senate Bill No. 1121 was presented before the Legislature of Puerto Rico for the creation of the "Public Energy Policy Act of Puerto Rico". The Bill establishes the new public policy on energy of Puerto Rico in order to create the parameters for a resilient, reliable and robust energy system, with fair and reasonable rates for all classes of consumers, enabling the user