Puerto Rico bill would condition tax breaks on job postings
New Progressive Party Sen. Roxanna Soto-Aguilú has introduced Senate Bill 890, legislation that would link certain tax incentives to mandatory employer participation in the Labor and Human Resources Department’s Employment and Recruitment Portal to Facilitate Labor Integration, known by its Spanish acronym Perfil.
The measure would amend the Puerto Rico Incentives Code, Act 60-2019, by adding a new Article 1010.1-A. Under the proposal, companies that receive or apply for tax incentive decrees tied to job creation, retention or expansion would be required to register on the Perfil platform and update their job openings monthly.
The requirement would apply to employers that file quarterly unemployment insurance contribution reports, effectively covering most businesses operating on the island. Compliance would be a condition not only for approval of new incentive applications, but also for the renewal and continued validity of existing decrees.
In its statement of motives, the bill argues that Puerto Rico’s labor market needs more “modern, collaborative tools” to connect jobseekers with available positions.
Perfil, developed by the Labor and Human Resources Department, uses artificial intelligence to allow employers to post vacancies, receive candidate recommendations and access a broader pool of workers.
Participation in the platform is currently voluntary, which Soto-Aguilú said has limited its impact. At the same time, the bill notes that Act 60 provides significant tax benefits to companies that commit to creating and retaining jobs as part of the island’s economic development strategy.
“These incentives represent a substantial public investment,” the bill states, adding that there is currently no requirement for beneficiary companies to contribute their job openings to a centralized system that could speed referrals and employment placement.
The legislation frames the proposal as a reciprocal obligation, asserting that companies benefiting from public tax incentives should make employment opportunities publicly available through a government platform. It also states that the requirement would not impose an undue burden, given that Perfil is free to use and supported by technical assistance from the Labor Department.
Senate Bill 890 includes enforcement provisions requiring employers to certify their registration and monthly updates with the Department of Economic Development and Commerce’s Incentives Office or the agency administering the decree.
Noncompliance could trigger a review and potential suspension or revocation of the incentive, following notice and a 30-day period to address deficiencies.
The bill also directs the Labor and Human Resources Department and the Department of Economic Development and Commerce to adopt regulations within 90 days of enactment to establish verification procedures and interagency coordination.
If approved, the measure would take effect “90 days after becoming law and would apply to new incentive applications submitted thereafter, as well as to renewals of existing decrees.” Incentives not conditioned on job creation or retention would be exempt.
