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.


To submit an application, please click here to access the Law 101 Portal.