United States (US) Treasury Assistant Secretary for Tax Policy David J. Kautter and Puerto Rico’s Treasury Secretary, Francisco Parés Alicea, recently discussed the impact of the proposed foreign tax credit regulations on the excise tax paid to Puerto Rico under Act 154. According to a press release from Secretary Parés Alicea following the meeting, Assistant Secretary Kautter indicated that the proposed regulations were not intended to affect taxpayers’ ability to claim a foreign income tax credit under Federal income tax law for Puerto Rico’s excise tax under the Act 154 regime.OverviewAct 154, enacted in October 2010, established a special 4% excise tax...