936 Act

The 936 Act was a U.S. law enacted in 1976 that provided substantial federal tax benefits to certain small and medium-sized manufacturing companies in Puerto Rico. It offered reduced corporate tax rates and incentives aimed at promoting economic growth and employment on the island. Essentially, it encouraged companies to establish manufacturing operations in Puerto Rico by making it financially attractive. The law was designed to boost the local economy but was later phased out and replaced with other tax incentives, such as Act 20 and Act 60, which continue to promote economic development in Puerto Rico today.