The Treasury Department released Informative Bulletin No. 16-11 of 6 May 2016 to pronounce that a restriction will be obligatory to the application of the investment, investigation and development tax credit which refers to a tax credit equal to 50% of investment made in Puerto Rico for a qualifying “exempt business” regarding to research and development, clinical trials, toxicology testing, infrastructure, renewable energy or intangible property. Exempt businesses can apply the CIID against the tax on income from certain particular operations. In addition, the CIID can be assigned, sold or otherwise transferred by exempt businesses or used against operating expenses of electricity, water and sewerage. These exempt businesses cannot use anymore the CIID to pay for their operational costs related with government provision of electricity, water and sewage services from 7 May 2016.
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