A New Puerto Rico Tax Incentives Code, Act 60, was signed into law on July 1, 2019 and substitutes Acts 20 and 22 effective for applications filed after December 31, 2019.

The New Incentives Code will require businesses applying for tax incentives for the export of goods to meet prescribed employment requirements. Under current Act 20, there are no mandatory employment requirements.

Act 60 also made significant changes to the requirements imposed to individual investors who relocate to Puerto Rico under the tax incentives program. Come January 1, 2020, only individuals who were not residents of Puerto Rico between July 1, 2009 and June 30, 2019 will qualify under ACT 22. Also, they will be required to acquire residential real estate in Puerto Rico and donate $10,000 to a local charity. Under current law 22, individuals who were not residents of Puerto Rico between 2006 and 2012 are eligible for tax incentives. Some individuals who are currently candidates for tax incentives under Act 22 may not qualify under Act 60.