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PS 377

“Para enmendar el inciso (b) de la Sección 1033.18 de la Ley 1-2011, según enmendada, conocida como “Código de Rentas Internas para un Nuevo Puerto Rico”, a los fines de aumentar de dos mil quinientos ($2,500) dólares a cuatro mil quinientos ($4,500) dólares la partida correspondiente a la exención contributiva por dependientes por individuo dispuesta en la Ley.”

2025-2028 Session

Raises Puerto Rico's dependent exemption from $2,500 to $4,500 per dependent, reducing taxable income for filers with dependents.

Comisión no recomienda aprobación de la medida
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WeVote Research Nonpartisan
Bill Summary · PS 377

Summary of Bill PS 377

Overview

Bill PS 377 proposes to amend the Puerto Rico Internal Revenue Code (Law 1-2011, as amended) by increasing the personal exemption for dependents from $2,500 to $4,500 per dependent. The measure aims to reduce taxable income for individuals who claim dependent exemptions.

Primary Purpose

  • To raise the dependent exemption amount in Section 1033.18(b) of the Internal Revenue Code for a New Puerto Rico.
  • The intended effect is to provide larger tax relief for taxpayers with dependents, by widening the deduction from $2,500 to $4,500 per dependent.

Key Provisions

  • Amendment to Law 1-2011, Section 1033.18(b) (as amended).
  • Increase the dependent exemption amount from $2,500 to $4,500 per dependent.
  • The text provided does not specify an effective date; the available information does not indicate an accompanying sunset provision, phase-in schedule, or related offsets.

Affected Parties and Impacts

  • Primary beneficiaries: Individual taxpayers in Puerto Rico who claim one or more dependents on their tax filings.
  • Potential impacts:
    • Higher per-dependent exemption reduces taxable income, potentially lowering individual tax liability.
    • Families with multiple dependents could see meaningful tax savings (e.g., 2 dependents could reduce taxable income by an additional $4,000 relative to current law; 3 dependents by $6,000, etc.).
    • Possible effects on government revenue and fiscal planning due to reduced tax collections, though no fiscal note is provided in the available information.

Procedural and Timeline Details

  • February 27, 2025: Bill filed (Radicado).
  • March 6, 2025: Appears in the Senate’s First Reading; referred to one or more Senate committees.
  • March 6, 2025: Referred to Commission(es).
  • June 23, 2025: Committee did not recommend approval of the measure (Comisión no recomienda aprobación de la medida), effectively signaling opposition or lack of support within the committee.
  • Status: The bill remains in the legislative process with no recommendation from the committee, reducing its likelihood of advancing unless amended or revived.

Next Steps and Considerations

  • If sponsor(s) wish to move PS 377 forward, they would likely need to address committee concerns, secure passage in the Senate committee, and navigate votes in the full chamber.
  • Potential considerations for any revision include: providing a fiscal note, identifying revenue offsets, clarifying the effective date, and aligning with other tax policy objectives.
  • Stakeholders (taxpayers with dependents, tax preparers, and fiscal planners) may monitor for amendments or alternative proposals that achieve similar relief.

Note: This summary reflects the information provided and does not include any additional fiscal or legal analysis beyond the listed provisions and actions.

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

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