On March 9, 2009, Act No. 7 was enacted with various changes to the Puerto Rico Internal Revenue Code of 1994. Under this act, exemptions for purchases of inventory to be sold have been eliminated. However, the exemption for items to be used in manufacturing activities has remained the same. Furthermore, the reseller can now claim a credit for the sales and use tax paid on the inventory sold. If a credit cannot be used right away it can be carried over until exhausted. Originally the provision was set to be applied on April 1, 2009; however, Act No. 15 extended the application of this provision until June 1, 2009. Senate Bill 874 has made the technical amendments that the above provisions failed to do by 1) reinstating a reseller exemption to parties with gross sales in excess of $500.000; 2) creating a new municipal exemption when the person is not eligible for the aforementioned re-seller exemption; and 3) commencing the provision on November 1, 2009. Further rules and regulations apply. (Commonwealth of Puerto Rico Department of the Treasury)