Puerto Rico Gov. Luis Fortuño ­Monday signed into law a tax-reform initiative that could provide $1.2 billion of annual tax relief for families and corporations for the next six years.

Effective immediately, businesses will pay fewer taxes, with the tax rate for the commonwealth’s largest businesses dropping to 30% from 41%. In 2014, corporations making $750,000 or more will pay a tax rate of 25% and those making less than $750,000 will have a 20% rate. The previous tax code had seven different tiers.

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