Para añadir un nuevo apartado (11) al inciso (a) de la Sección 1033.15 de la Ley 1-2011, según enmendada, conocida como “Código de Rentas Internas para un Nuevo Puerto Rico”, a los fines de permitir una deducción de hasta mil quinientos dólares ($1,500.00) anuales por servicios voluntarios prestados a organizaciones sin fines de lucro, facilidades de salud u organismos públicos, según definidos en los Artículos 3 y 5 de la Ley 261-2004, según enmendada, conocida como “Ley del Voluntariado de Puerto Rico”; y para otros fines relacionados.

2025-2028 Session

Puerto Rico tax code amendment allows $1,500 annual deduction for volunteer work at nonprofits and public agencies to incentivize community service.

Referido a Comisión(es)

Legislative bill overview

Bill PS 984 proposes adding a new tax deduction to Puerto Rico's Internal Revenue Code that would allow individuals to deduct up to $1,500 annually for volunteer services provided to nonprofits, health facilities, and public agencies as defined under Puerto Rico's Volunteering Law. This amendment would recognize and incentivize volunteer work through the tax system by reducing taxable income for those who donate their time to eligible organizations.

Why is this important

Volunteer work is critical to Puerto Rico's social infrastructure, particularly for nonprofits and public health services that operate with limited budgets. By creating a financial incentive through tax deductions, the bill aims to encourage more citizens to volunteer while providing modest tax relief to those already engaged in unpaid community service. This could strengthen the capacity of charitable and public health organizations while promoting civic participation.

Potential points of contention

Valuation and verification challenges: Determining the precise monetary value of volunteer hours and preventing fraud or inflated claims could prove administratively complex for tax authorities

Equity concerns: The deduction primarily benefits higher-income taxpayers who actually owe taxes; lower-income volunteers may see minimal or no benefit since they may not have sufficient tax liability to use the deduction

Revenue impact: The deduction reduces government tax revenue, which may be significant if uptake is high, raising questions about fiscal sustainability during Puerto Rico's economic recovery period

Definition scope: Disagreement may arise over which organizations qualify as eligible, potentially excluding some nonprofits or creating inconsistencies with the referenced volunteering law