F.A.Q.s

Process changes

There are important changes to the process that now require researcher action after UPRM submits their application to the PRSTRT.

• The process is initiated at the campus level, with each researcher completing an online pre-qualification for a specific project and their role in it.

• After pre-qualifying, the researcher must upload the required project and payroll-related documents.

• The researcher's deanship will verify that the documents are complete before an application case number is assigned.

• The UPRM Researcher Tax Exemptions Committee will evaluate each case, and consider any appeals.

• The UPRM Payroll Office will issue a salary certification document.

• Once all required documents are ready, the UPRM R&D Center will submit the application to the PRSTRT.

Under Law 101, the PRSTRT completed their evaluation and submitted a researcher's documents to Hacienda. Under the new Act 60 process, the PRSTRT will send an eligibility certification to the researcher, who must then provide a notarized, sworn statement and apply for the exemption decree on DDEC's portal.

Eligibility changes for individuals

A DDEC tax exemption decree is a legal agreement between the Government of Puerto Rico and an eligible individual.

Under Act 60-2019:

• Only researchers holding a PI or Co-PI role in a project are eligible.

• As established by the PRSTRT, these roles mean the following:

  • Multiple PI and Co-PI: Some sponsors use the term Co-PI or Multiple PI to indicate the role has equal responsibility and authority as the lead PI (NIH uses the term Multiple PI, and NSF uses the term Co-PI).

  • Co-investigators or Co-I: This title is used to indicate the individual makes significant contributions, but does not have overall responsibility and authority for the project. They are NOT considered PD/PIs and will not be considered for the incentive.

• The individual must have been a resident of Puerto Rico during the taxable year for which the incentive is being requested.

• The individual must have been employed by an Institution of Higher Education during the taxable year for which the incentive is being requested.

Eligibility changes for projects

Under Act 60-2019:

• Prime awards, subawards and subcontracts are now eligible.

• The funds must be granted through a competitive award.

• The competition must be open to the scientific community. This includes standard competitive grants, and grants from restricted funds for underserved minorities.

• The selection must incorporate a peer-review model such as the one used by NSF and NIH.

• Eligible projects now include research, training, capacity development, and workforce development.

Eligibility changes for sponsors

Under Act 60-2019:

• The following sponsor types are now eligible: federal agencies, private foundations, private industry, and non-governmental organizations.

As stated by the PRSTRT on April 7, 2021, after consulting with DDEC and Hacienda:

• Compensation from external funds linked to an eligible project.

• Compensation from matching funds linked to an eligible project.

• Compensation from release time linked to an eligible project.

• A $5 cost for submitting an application through DDEC's online portal (as of 2021-04-10).

• The cost of notarization of a sworn statement by a public notary. This cost is incurred for the researcher's sworn statement, which is a different document from the chancellor's sworn statement and should only be prepared once the researcher recieves a certification of eligibility from the Puerto Rico Science, Technology and Research Trust.

• For internal UPRM workflow purposes, researchers must submit one application per person, per project.

• These projects will be evaluated and processed individually at UPRM. Please remember that the government agency documents provided by DDEC were designed for one single project per request.

• However, when the researcher applies to DDEC they should merge all relevant documents according to DDEC's file upload requirements, submitting a single application that includes all eligible projects. This will result in lower costs for the researcher than submitting an individual application and sworn statement for each project.

The PRSTRT indicated on April 7, 2021 that these cases will be evaluated on a case-by-case basis. We have provided a template for sponsor certification of a PI / Co-PI role, based on the NIH, NSF and PRSTRT definitions of a Co-PI. This is not an official PRSTRT document, but can help strengthen your case.

As stated by the PRSTRT on April 7, 2021, after consulting with DDEC and Hacienda:

• Tax exemptions are granted on an annual basis.

• DDEC will request that all cases for tax year 2020 provide copies of all required documents, even if the project was previously accepted for an exemption under Law 101.

Therefore, all 2020 applications must provide the full documentation required for new cases. In future years, continuation cases will not have to provide these documents.