Para establecer la "Ley para Incentivar la Retención y Retorno de Nuestra Juventud y Fomento de Familias Jóvenes"; enmendar las Secciones 1031.02, 1033.15, añadir nuevas Secciones 1052.05, 1052 .06 y 1052.07 de la Ley 1-2011, conocida como Código de Rentas Internas de Puerto Rico de 2011, según enmendada; enmendar la Sección 1020.02 de la Ley 60-2019, conocida como el Código de Incentivos, según enmendada; a los fines de ampliar las exenciones contributivas aplicables a jóvenes, establecer un crédito por los pagos de préstamos estudiantiles, establecer un crédito por menor dependiente en Puerto Rico, disponer para la deducibilidad de los gastos de transporte aéreo y mudanza a Puerto Rico, los pagos de alquiler residencial a largo plazo y los gastos médicos veterinarios, establecer un crédito para la compra de bicicletas eléctricas, extender la edad de elegibilidad de incentivos para jóvenes empresarios para profesionales médicos y veteranos; y para otros fines relacionados.

2025-2028 Session

Bill expands Puerto Rico tax incentives for young people via student loan credits, dependent credits, relocation deductions, and extended entrepreneur benefits targeting retention and migration.

Comisión no recomienda aprobación de la medida

Legislative bill overview

Bill PS 168 proposes comprehensive tax incentives and credits aimed at retaining young professionals and families in Puerto Rico. The legislation modifies Puerto Rico's Internal Revenue Code and Incentives Code to create or expand tax benefits including student loan payment credits, dependent child credits, relocation expense deductions, residential rent deductions, electric bicycle purchase credits, and extended eligibility for young entrepreneur incentives to include medical professionals and veterans.

Why is this important

Puerto Rico faces significant demographic challenges due to population emigration, particularly among young, educated professionals. This bill attempts to address brain drain through financial incentives, making it economically more attractive for young people to remain on or relocate to the island. The fiscal impact of these tax breaks could be substantial, potentially reducing government revenue while attempting to stimulate economic activity and population retention.

Potential points of contention

Fiscal sustainability: The cumulative cost of multiple new tax credits and deductions could significantly reduce Puerto Rico's already constrained tax revenue, raising questions about whether the government can afford these incentives given its debt crisis

Regressive targeting: Benefits favor those with higher incomes and specific professions (medical professionals, veterans), potentially benefiting higher-income brackets more than lower-income young families

Administrative burden: Implementing and verifying numerous new credits (student loans, dependents, bicycles, relocation) increases tax administration complexity and compliance costs for both taxpayers and the government