Law 101

Message to UPRM researchers with scientific external awards:

If you are a Principal Investigator (PI) or Co-Principal Investigator (Co-PI) of a scientific external award you may qualify for a unique tax incentive.  The Scientific Investigators Act (known as Law 101 and in Spanish, Ley de Incentivo Contributivo a Investigadores Científicos) was approved in 2008.  Its purpose is to attract and retain competitive scientific researchers, and foster scientific research and development activities conducted in universities located in Puerto Rico.  The ultimate goal is to strengthen Puerto Rico’s competitiveness in science, technology and knowledge economy.

The responsibility of Law 101 is divided between YOU and three organizations: UPRM, Puerto Rico’s Science, Technology and Research Trust, and Puerto Rico’s Department of Treasury (better known by its name in Spanish, Hacienda).  The main role of each party are the following (as stated in the Act and manual of procedures):

  1. Principal Investigator or Co-Principal Investigator

    • Notify their Academic Institutions of the desire to seek the Law 101 – 2008 Incentive for one or more of their external awards. Compile necessary information to submit to their institutions.
  1. University of Puerto Rico, Mayagüez Campus
    • Appoint a Suitable Evaluator (or Evaluators Committee) to review external awards for a tax year, select those that qualify for consideration under Law 101-2008, and submit materials to the Trust.
  1. Puerto Rico Science, Technology and Research Trust (“Trust”)
    • Reviews nomination materials received from the Academic Institutions and makes a recommendation to Puerto Rico’s Department of Treasury based on Law 101-2008 criteria.
  1. Hacienda
    • Makes final decision regarding exemption and notifies investigator. If exemption is approved, Hacienda will calculate changes to tax and may issue a reimbursement.

If you had external research awards in calendar year 2015 follow these steps:

For 2015 awards (awards active during calendar year 2015) Deadline: March 14, 2016 (The Sooner the Better)

  • New 2015 cases 
    1. Prepare the following documentation for each award for evaluation:
      • Form titled: “Solicitud de Incentivo Contributivo para Investigadores Científicos bajo la Ley Núm 101 del 27 de junio de 2008 – Casos Nuevos
      • Copy of
        • Proof of 2015 income:
          • Semester “Plan Docente”
          • All years PAPPs related to the project
          • Form 125A and Form 125B (if available)
        • Proposal submitted. IMPORTANT:
          • The proposal should clearly state your role. The only qualifying roles are Principal Investigator and Co-Principal Investigators.
          • The proposal should clearly state that the award is mainly for research, not teaching, training or service.
        • RFP: request for proposal
        • Award letter or notification
        • Contract or any other agreement document related to the award.
        • Any other material related to the award that you think is important to validate your case.
    2. Send paper documentation to Griselle Hernández, Esq. Legal Advisor at the UPRM Research and Development Center, Office of the Director before March 14, 2016.
  • Continuation 2015 cases – cases approved in 2014 that were active in 2015.
    1. Prepare the following documentation for each award for evaluation:
    2. Send paper documentation to Griselle Hernández, Esq. Legal Advisor at the UPRM Research and Development Center, Office of the Director before March 14, 2016.

 

For more information please do not hesitate to contact Griselle Hernández, Esq. Legal Advisor at the UPRM Research and Development Center, Office of the Director at griselle.hernandez2@upr.edu or extension 5250.