Business

Puerto Rico Manufacturers Association and House Lawmakers Debate Taxes, Energy, Labor and Water at Joint Hearing

Published Nov 5, 2026, 1:04 AM ASTvia San Juan Daily Star

At a glance

  • PRMA representatives opposed reversing the current energy structure but demanded strict performance metrics on private operators, faster Genera PR battery storage projects and quicker approval of the Integrated Resource Plan
  • Engineer Carlos González proposed six-month technical brigades to audit roughly 10,000 miles of AAA pipelines and bottom-oxygenation technology to cut the 350 million gallons lost daily
  • PRMA’s Human Capital Committee backed eliminating the Minimum Wage Commission and flexible work arrangements, citing a roughly 45% labor force participation rate versus about 61% on the mainland

Why this matters: With Puerto Rico’s labor force participation at roughly 45% and manufacturers weighing Costa Rica or the Dominican Republic instead, the recommendations lawmakers heard on taxes, energy reliability and AAA water losses touch directly on the island’s ability to keep and attract jobs.

Business leaders and Puerto Rico House lawmakers debated tax policy, energy reform, labor rules and water infrastructure at a hearing held Tuesday at the headquarters of the Puerto Rico Manufacturers Association (PRMA). The hearing was convened under House Resolution 456 by the House Committee on Reorganization, Efficiency and Diligence, chaired by Rep. Ángel Morey Noble, and the House Committee on Small and Medium-Sized Businesses.

On taxes, industry representatives said municipal sales tax bureaucracy and State Insurance Fund employer costs burden businesses. Carlos Serrano, chair of the PRMA’s Fiscal Policy Committee, urged investing government surpluses in equipment and capital incentives. Kenneth Rivera, secretary of the PRMA board, called the tax system too complex and favored pre-filled returns and accelerated depreciation.

On energy, PRMA representatives opposed a return to a state-run monopoly under the Puerto Rico Electric Power Authority. Eidalia González urged strict performance metrics for private operators, faster battery storage projects by Genera PR and quicker approval of the Integrated Resource Plan, and cautioned against nuclear energy without evaluating costs and water use. Rubén Ríos warned that litigation is deterring investment, with companies eyeing Costa Rica and the Dominican Republic.

Morey Noble highlighted House Bill 1092, which would include small modular nuclear reactors as base-load generation. On labor, Georyanne Ríos cited a participation rate of roughly 45% versus about 61% on the US mainland. The group backed eliminating the Minimum Wage Commission.

Morey Noble agreed on avoiding added business costs. Engineer Carlos González said about 350 million gallons of water per day are lost in the Puerto Rico Aqueduct and Sewer Authority system and proposed bottom-oxygenation technology and audit brigades for roughly 10,000 miles of pipelines.

In context (787daily, from public data)

SourceSan Juan Daily Star