Provisions Regarding Economic Development  Title IV, Section 409: Congressional Task Force on Economic Growth in Puerto Rico  Title V: Puerto Rico Infrastructure Revitalization  Title VII: Sense of Congress Regarding Permanent, Pro-Growth Fiscal Reforms  Puerto Rico Economic Growth Proposal 2

Puerto Rico Infrastructure Revitalization  overhaul the processes for review and permitting of certain infrastructure projects  create the position “Revitalization Coordinator”  expedited review process for “Critical Pojects” 3

Puerto Rico Infrastructure Revitalization  Revitalization Coordinator to be appointed by the Governor nominees selected by the Oversight Board backgrounds in planning, financing, and development of infrastructure projects 4

Puerto Rico Infrastructure Revitalization  Critical Project intimately related to addressing an emergency whose approval, consideration, permitting and implementation shall be expedited and streamlined according to the statutory process provided by Act 76, or otherwise adopted pursuant to this title 5

Puerto Rico Infrastructure Revitalization  Critical Project Evaluation criteria: ̶impact the project would have on an emergency ̶availability of funds to implement the project ̶cost of the project (including the cost to the Government of Puerto Rico) ̶environmental and economic benefits provided by the project ̶current status of the project; and ̶additional criteria related to energy production and conservation that the Revitalization Coordinator deems appropriate 6

Puerto Rico Infrastructure Revitalization  Expedited Permitting Process Agencies evaluating a Critical Project must establish one or the Revitalization Coordination may develop the agency’s process Governor must notify the Oversight Board of laws that might “affect the Expedited Permitting Process.”  Interagency Environmental Subcommittee Revitalization Coordinator and representatives of various Puerto Rico agencies chosen by the Governor 7

Sense of Congress Regarding Permanent, Pro- Growth Fiscal Reforms  Section 701 expresses the sense of Congress that “any durable solution for Puerto Rico’s fiscal and economic crisis should include permanent, pro-growth fiscal reforms that feature, among other elements, a free flow of capital between possessions of the United States and the rest of the United States.” 8

PR Economic Growth Proposal  Developing a new U.S. tax policy to promote investment and industrial growth in P.R. by: Creating a strong incentive for businesses to operate in P.R. Ensuring these companies’ advantage over other foreign jurisdictions.  Ensuring that such policy is consistent with U.S. tax reform proposals and potential outcome of U.S. tax reform.  Ensuring that the proposal addresses Section 936 criticism. Mandatory repatriation of trapped PR source income. Strong base erosion rules. 9

PR Economic Growth Proposal Exemption of 85% on dividends (or repatriation payments) from eligible P.R. corporations, as defined. 85%1/2 Dividend Exemption: 10

Congressional Task Force on Economic Growth in Puerto Rico Senate (R): Hon. Orrin G. Hatch Hon. Marco A. Rubio House (R): Hon. Sean Duffy Hon. Thomas C. MacArthur Senate (D): Hon. Robert “Bob” Menendez Hon. William “Bill” Nelson II House (D): Hon. Nydia M. Velazquez Hon. Pedro Pierluisi 12

Congressional Task Force on Economic Growth in Puerto Rico  The Task Force would be charged with issuing a report by December 31, 2016, that would examine the relation of federal laws and economic growth in Puerto Rico; economic consequences of a Puerto Rico Department of Health Regulation 346, which relates to natural products, natural supplements, and dietary supplements; and would recommend changes to federal laws to spur sustainable, long-term economic growth; recommend changes to federal law and programs that would reduce child poverty; and include additional information as deemed necessary. 13