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PS 112

Para enmendar el inciso (b) de la Sección 2 de la Ley 132-2010, según enmendada, mejor conocida como “Ley de Estímulo al Mercado de Propiedades Inmuebles”, a fin de extender el término de la exención contributiva aplicable al ingreso devengado por concepto de renta de propiedad residencial de quince (15) años a veinte (20) años y establecer la nueva fecha límite hasta el 31 de diciembre de 2030.

2025-2028 Session

Withdrawn bill proposed extending Puerto Rico's residential rental property tax exemption from 15 to 20 years through 2030, reducing government revenue while incentivizing rental housing investment.

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Bill Summary · PS 112

Legislative bill overview

Bill PS 112 proposes amending Puerto Rico's Real Estate Market Stimulus Law (Law 132-2010) to extend the tax exemption for residential rental property income from 15 years to 20 years, with a deadline of December 31, 2030. The bill was introduced in January 2025 but was withdrawn by its author in May 2025, so it is no longer under consideration.

Why is this important

Tax exemptions for rental properties directly affect housing supply, investment incentives, and government tax revenue. Extending the exemption period could encourage property owners to maintain rental units on the market longer, potentially stabilizing housing availability, but would reduce municipal and commonwealth tax collections during that extended period. The policy reflects ongoing debates about using tax incentives to address Puerto Rico's housing and economic challenges.

Potential points of contention

  • Tax revenue impact: Extending the exemption from 15 to 20 years reduces government income during a period when Puerto Rico faces fiscal constraints and relies on tax revenue for public services
  • Market fairness: Landlords receiving extended exemptions gain competitive advantage over those outside the program or those who invested without this benefit
  • Housing affordability: Unclear whether tax exemptions actually result in lower rents for tenants or primarily benefit property owners' profit margins

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

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