There is concern among economic and industrial sectors on the island over the uncertainty regarding the date the U.S. government will choose to stop granting multinational companies operating in Puerto Rico federal tax credits for what they pay here through Law 154-2010.
“If it is eliminated tomorrow (in the short term), it complicates things. If it can be planned and there is a phase-out period, some years, the impact can be reduced,” said Kenneth Rivera, vice president for the Manufacturers Association and former president of the Chamber of Commerce.
Law 154 imposes a 4 percent tax on foreign corporations on the island. The tax brings about $1.8 billion for the Treasury annually, which represents about 20 percent of the central government’s budget.