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PS 1185

“Para enmendar las secciones 1020.08 y 2083.01 de la Ley 60-2019, según enmendada, conocida como “Código de Incentivos de Puerto Rico”, con el propósito de permitir la transferencia de una Certificación de Agricultor Bona Fide al cónyuge supérstite cuando un agricultor bona fide fallece, de cumplirse con los requisitos que se disponen a esos efectos; disponer que los beneficios que se les otorgan a los agricultores bona fide serán efectivos, desde el día primero (1) de julio de un año hasta el día treinta (30) de junio del próximo año, lo que constituye el año fiscal del Gobierno de Puerto Rico; ordenar a los secretarios de los departamentos de Agricultura; y de Hacienda a enmendar o aprobar aquellos reglamentos, determinaciones administrativas, cartas circulares o boletines informativos que se entiendan pertinentes, para atemperarlos a las disposiciones de esta Ley; y para otros fines relacionados.”

2025-2028 Session

Allows a surviving spouse of a Bona Fide farmer to receive the certification for the remaining term after the farmer’s death, provided they meet criteria and apply quickly.

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Bill Summary · PS 1185

Overview

PS 1185 (Session 2025-2028, Puerto Rico) proposes amendments to the Puerto Rico Incentives Code (Ley 60-2019, según enmendada) to:
- permit a bona fide farmer’s widow/widower to receive the Bona Fide Farmer Certification after the original farmer’s death (transfer of certification to surviving spouse, if certain conditions are met), and
- standardize and extend the effectiveness period of Bona Fide benefits to a July 1 – June 30 fiscal year, aligning with Puerto Rico government fiscal years.

The bill also directs the Secretaries of Agriculture and Hacienda to amend relevant regulations, determinations, circular letters, or informational bulletins to conform with these changes, and to address related matters.

Key Provisions

  1. Transfer of Bona Fide Certification to Surviving Spouse (natural person)

    • If a Bona Fide Farmer dies, the surviving spouse may have the Bona Fide Certification transferred to them for the remaining term.
    • The surviving spouse must demonstrate that they were part of the agricultural business and that, for the five tax years immediately preceding the death, the deceased and spouse filed joint income tax returns (or otherwise evidenced joint participation in the business).
    • The transfer must be requested within ten (10) business days after the death, using forms provided by the Secretary of Agriculture.

  2. Fiscal Year Alignment for Bona Fide Benefits

    • Benefits to Bona Fide Farmers would be effective from July 1 of a year through June 30 of the following year (the Government of Puerto Rico’s fiscal year), instead of aligning with calendar year or other periods.

  3. Regulatory amendments

    • The Secretary of Agriculture is to amend Section 3.11 of Article IV, Subchapter 1, Chapter III, Volume II of Regulation 9630 (the Agricultural Incentives Code) to:
      • set the Bona Fide Certification validity to four years,
      • ensure consistency with these amendments, and
      • adjust the regulation accordingly.

  4. Regulatory and Administrative Adjustments by Agencies

    • The Secretary of Agriculture must amend the Agriculture Incentives Code regulations to reflect the four-year certification period and other changes within 60 days of approval.
    • The Secretary of Hacienda must amend Regulation 8049 (Internal Revenue Code regulation) and any related materials to conform with the changes within 30 days, without being bound by the Uniform Administrative Procedures Act (Loi 38-2017).

  5. Supremacy and Miscellaneous Provisions

    • The bill explicitly repeals any laws or parts of laws incompatible with its provisions.
    • It preserves the rest of the law if any part is declared unconstitutional, limiting the effect to the unconstitutional portion.
    • Effective immediately upon approval.

Who Would Be Affected

  • Bona Fide Farmers and their families:
    • Current holders could benefit from a four-year certification term.
    • Surviving spouses of Bona Fide farmers could receive a transfer of the certification if they meet criteria and apply within the window after death.
  • Agricultural departments:
    • Department of Agriculture (Secretariat) would implement the transfer process, adjust the certification term, and revise related regulations.
  • Puerto Rico Department of Hacienda:
    • Would adjust tax guidance/regulations to reflect the new certification timing and transfer provisions.
  • Regulatory framework:
    • Regulations, administrative determinations, circular letters, and bulletins related to the Incentives Code would be updated to align with the four-year certification cycle and the transfer procedure.

Procedural and Timeline Aspects

  • The legislation sets:
    • a requirement for regulatory amendments by Agriculture within 60 days of approval,
    • a requirement for tax regulation amendments by Hacienda within 30 days of approval,
    • a general effective date “immediately” upon approval.
  • The transfer eligibility window for a deceased Bona Fide farmer’s spouse is within ten (10) business days after death, contingent on evidence of five consecutive tax years of joint filing prior to death.

Practical Impact and Rationale

  • The bill aims to improve continuity of farm operations and family livelihoods after the death of a Bona Fide farmer by enabling a surviving spouse to maintain eligibility for incentives.
  • It addresses misalignment between certificate validity and fiscal year timing, adopting a uniform July–June program year to reduce delays in issuing incentives.
  • The changes emphasize clarity and administrative efficiency by requiring timely regulatory updates and aligning incentives with the government’s fiscal framework.

Compiled from official sources — confirm details with the bill’s official record.

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