Fortuño presses Obama for creation of Section 933A
Gov. Luis Fortuño urged Pres. Barack Obama Wednesday to include Puerto Rico in its new national economic plan, stressing that “Puerto Rican jobs are U.S. jobs.”
In a letter sent to the White House, Fortuño said Puerto Rico “must be treated as part of the nation in any tax proposal,” revisiting his administration’s lobbying efforts in favor of the creation of Section 933A of the U.S. Internal Revenue Code.
“You recently said that you would soon be unveiling a tax incentives proposal that rewards companies that invest or generate jobs in the United States, while eliminating tax advantages given to companies that export jobs,” Fortuño said in the letter. “My administration is ready to work with your administration to develop the necessary provisions that guarantee Puerto Rico’s inclusion in this initiative, so the island benefits in the same way as the rest of the country.”
In September, Resident Commissioner Pedro Pierluisi submitted in Congress the Puerto Rico Investment Promotion Act, proposing the creation of Section 933A that would authorize — but not require — Puerto Rico corporations that earn at least 50 percent of their income on the island to elect to become domestic U.S. companies. In doing so, the companies would essentially receive the same federal tax treatment that Puerto Rico individuals receive under current law.
PRIPA, as the proposal is known, has received bi-partisan support as well as backing from the island’s public, private and labor groups, who agree it is a way to incentivize investment in the island and create jobs.
“I respectfully request your administration’s support for PRIPA, as well as the provision of an investment incentive which would otherwise result in the territory, and consequently the U.S, losing jobs that would go to other countries,” Fortuño said.
The PRIPA bill has 11 co-sponsors in Congress and is before the U.S. House Ways and Means Committee for consideration.