Schedule B1 Individual - Credits For Purchase Of Products Manufactured In Puerto Rico And Puerto Rican Agricultural Products - 2008 Page 4

Instructions Schedule B1 Individual - Page 2

PART IV - CREDIT FOR INCREASE IN PURCHASES OF PUERTO RICAN

AGRICULTURAL PRODUCTS (SECTION 1040F)

Section 1040F of the Code provides a credit to every eligible business that

increases the purchases of Puerto Rican agricultural products in substitution of

imported products for local sale.

The credit will be not less than 5% and up to a maximum of 20% of the increase in the

purchase value of agricultural products harvested, produced and elaborated in Puerto

Rico during the taxable year in which the credit is claimed, over the average of the

purchases of such products during the previous 3 taxable years, or that part of such

period that may be applicable.

Eligible business is the one that acquires Puerto Rican agricultural products through

a contract between such business, the Secretary of Agriculture and an agricultural

production group promoted by the Department of Agriculture or an Agricultural

Sector organized under the Puerto Rico Agriculture and Livestock Industry

Regulating Act or with a Qualified Farmer.

This credit may be used to reduce up to 25% the tax of the eligible business.

Enter in the spaces provided, the name of each Agricultural Production Group,

Agricultural Sector or Qualified Farmer from which you made the purchases; the

number of each contract with the Department of Agriculture; the purchases increase;

the percentage granted; and the amount of each credit according with the Tax

Credit Certification issued by the Department of Agriculture.

Line 2- Enter the amount of credit carried from previous years due to the 25%

limitation. Submit a detailed schedule showing the breakdown of said carry forward

credit.

0 votes

Parent category: Financial