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PC 432

Para adoptar la “Ley de Incentivo Contributivo para la Venta de Bienes Inmuebles Inertes” a los fines de establecer un crédito contributivo hasta un máximo equivalente al setenta y cinco por ciento (75%) del valor total de compraventa del bien inmueble, exonerar del pago de aranceles y comprobantes de inscripción del Registro de la Propiedad y otros fines relacionados.

2025-2028 Session

Puerto Rico tax credit bill offers up to 75% deduction on real estate sales and waives registration fees to spur development of dormant properties, risking significant revenue loss during fiscal crisis.

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Bill Summary · PC 432

Legislative bill overview

Bill PC 432 proposes a tax incentive program in Puerto Rico that offers real estate developers and sellers a tax credit of up to 75% of the property sale value for inactive or undeveloped real estate. The bill also exempts these transactions from property registration fees and related administrative costs to encourage the sale and development of dormant properties.

Why is this important

Puerto Rico has significant inventory of abandoned and undeveloped properties that represent lost economic potential and contribute to urban blight. This incentive aims to stimulate the real estate market by making property transactions more financially attractive, potentially increasing development activity, generating employment, and revitalizing communities. However, the fiscal impact on government revenue could be substantial given the high tax credit percentage offered.

Potential points of contention

  • Revenue loss: A 75% tax credit on real estate transactions represents significant foregone government revenue during a period when Puerto Rico faces fiscal constraints and debt obligations
  • Equity concerns: The benefit primarily favors property owners and developers; unclear if incentives translate to affordable housing or community benefits for lower-income residents
  • Market distortion: Such generous credits may artificially inflate property values or create speculative investment rather than genuine development, and may primarily benefit wealthy investors
  • Definition ambiguity: The term "bienes inmuebles inertes" (inactive properties) lacks precise legal definition, potentially creating disputes over eligibility and implementation challenges

Compiled from official sources — confirm details with the bill’s official record.

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