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PC 1001

Para enmendar el Artículo 2 de la Ley Núm. 148 de 30 de junio de 1969, según enmendada, para disponer que el bono de navidad de los empleados de empresa privada se pagará sin aplicársele deducciones tributarias estatales; y para otros fines relacionados.

2025-2028 Session

Eliminates state income tax withholding from private sector Christmas bonuses to increase employee take-home pay, reducing government revenue without specified compensation.

Referido a Comisión(es)
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WeVote Research Nonpartisan
Bill Summary · PC 1001

Legislative bill overview

Bill PC 1001 proposes to amend Law 148 of 1969 to require that Christmas bonuses paid by private companies to their employees be distributed without state tax deductions. Currently, these bonuses are subject to Puerto Rico's income tax withholding requirements, which reduces the net amount employees receive.

Why is this important

This change would increase take-home Christmas bonus payments for private sector workers by eliminating state income tax withholding on these specific payments. For many lower and middle-income workers, this represents meaningful additional cash during the holiday season, though it would reduce government tax revenues and could affect Puerto Rico's fiscal situation.

Potential points of contention

  • Fiscal impact: The measure reduces state tax revenue without identifying offsetting budget reductions or new revenue sources, which is particularly significant given Puerto Rico's ongoing fiscal recovery plan
  • Equity concerns: The exemption applies only to private sector employees, potentially creating disparity with public sector workers who would not receive the same tax benefit
  • Tax policy precedent: Selective tax exemptions for specific bonus payments may complicate the tax code and could prompt similar exemption requests for other employee benefits or compensation types

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

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