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PS 147

Para añadir un subinciso (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 añadir como deducción a la planilla de contribución sobre ingresos los intereses sobre préstamos de automóviles en que incurren los estudiantes universitarios en Puerto Rico; y para otros fines relacionados.

2025-2028 Session

Puerto Rico bill proposes tax deduction for university students' car loan interest, but committee rejected it citing revenue and equity concerns.

Comisión no recomienda aprobación de la medida
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Bill Summary · PS 147

Legislative bill overview

Bill PS 147 proposes adding a new tax deduction to Puerto Rico's income tax code (Código de Rentas Internas) that would allow university students to deduct automobile loan interest payments from their taxable income. This would represent a targeted tax benefit specifically for student borrowers financing vehicles on the island.

Why is this important

Tax deductions directly reduce taxable income, which lowers the amount of taxes owed. For university students already managing education costs, this could provide meaningful financial relief. However, the measure also reduces government tax revenue, which affects public budget allocation and funding for other priorities.

Potential points of contention

  • Revenue impact: The Committee recommendation against approval suggests concerns about lost tax revenue; the fiscal cost to Puerto Rico's budget may not be justified given the island's fiscal challenges
  • Equity concerns: This benefit targets only vehicle loan interest for university students, raising questions about why this specific group deserves preferential treatment over other taxpayers or debt holders
  • Administrative complexity: Verifying student status and qualifying auto loans requires additional tax administration resources and creates potential for fraud or misclassification
  • Policy rationale: The bill lacks clear justification for why automobile loans specifically warrant deduction when other essential student expenses (tuition, living costs) are not similarly treated

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

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