Frequently Asked Questions and Answers
What is the purpose of the Employment Now Energy Credit Law?
- Facilitate the creation of jobs, within eighteen (18) months.
- Create economic opportunities to promote the creation of small and medium enterprises through the granting of incentives.
- Grant an energy credit among participating companies as a strategy to encourage the creation of jobs while helping them offset the high operational costs related to the consumption of electricity.
- Create an alternative process to expedite the granting of permits, without detriment to environmental protection or the safety of our constituents.
- Stimulate capital investment and economic development; reverse the deterioration prevailing in the economic indexes of the island like the labor participation rate and the level of unemployment.
- Establish a salary subsidy for companies that hire employees who lost their job as a result of Law 7-2009, as amended; establish the minimum requirement of job creation that must be achieved in this Special Agreement so companies can benefit from this statute.
What is an Energy Credit?
- An Energy Credit is a cost reduction that is granted to participating companies to encourage the creation of jobs from January 1, 2013 to June 30, 2014.
Who can benefit from an energy credit?
- The Energy Credit will be available for all eligible business that has a commercial or industrial account with the Electric Power Authority of Puerto Rico.
- The Eligible Business may not be receiving credits nor any other tax or economic incentives for creating jobs under the Incentive Laws, as defined in Law 1-2013.
What is the amount of the Energy Credit?
- The Energy Credit will be calculated by each Incremental Eligible Employment, whose annual basic salary exceeds $20,000 per year and will be granted according to the following table:
Basic salary of the full-time Eligible Employee hired
Energy Credit that applies between 1/1/13 and 12/31/13
Energy Credit that applies between 1/1/14 and 3/31/14
Energy Credit that applies between 1/4/14 and 6/30/14
|$20,001 to $25,000
|$25,001 to $60,000
|$60,001 to $75,000
- The Energy Credit granted by each Incremental Eligible Employment, whose annual base salary is equal to or less than $ 20,000 per year, which is not subject to tax withholding, will be claimed 75% as of December 31, 2013 and the remaining 25% as of June 30. of 2014:
- $750 per Eligible Employee hired between January 1, 2013 and December 31, 2013
- $350 by Eligible Employee hired between January 1, 2014 and March 31, 2014
- $150 by Eligible Employee hired between April 1, 2014 and June 30, 2014
What type of employees are considered for the Energy Credit?
- Each full-time employee, who is resident of Puerto Rico, who is included in the payroll of the Eligible Business and the equivalent number of full-time employees, shall be included.
What does "equivalent number of full-time employees" means?
- The "equivalent number of full-time employees" will be determined by adding the hours of work of employees who are not hired as full-time employees and dividing the resulting amount by 520 to determine the quarterly Incremental count of Eligible Employment and by 162 to determine the incremental monthly eligible Employment.
What must be done to receive an Energy Credit?
- Submit an original and a copy of a sworn energy credit application form to the Department of the Treasury, no later than the last day of the month following the end of the quarter for which an Incremental Employment is claimed for.
- Submit the Eligible Business Certification issued by the Commerce and Exportation Company.
- Present a Certification issued by the Department of the Treasury that states the amount approved for Energy Credit to the Electric Power Authority, together with the stamped copy of the sworn energy credit application form.