SR0551 103RD GENERAL ASSEMBLY

SR0551 LRB103 35027 LAW 64956 r

SENATE RESOLUTION

WHEREAS, Since 2012, tax incentives have been provided to investors, primarily mainland Americans, allowing them to pay no taxes on interest, dividends, or capital gains upon relocating to the Commonwealth of Puerto Rico; and

WHEREAS, These tax incentives were initially intended to promote economic growth and investment in Puerto Rico; and

WHEREAS, Despite the influx of investors, there is limited evidence of trickle-down benefits for the broader Puerto Rican economy, as reported by the Washington Post; and

WHEREAS, After a decade of these tax incentives, evidence from an Internal Revenue Service investigation indicates misuse of these incentives, leading to growing frustrations among Puerto Ricans due to the apparent favoritism; and

WHEREAS, Such misuse undermines the intent of the tax incentives, potentially displacing local residents and causing significant economic disparities; and

WHEREAS, Tax incentives and the right to return to land should only benefit Puerto Ricans in the diaspora and those who reside in the Commonwealth of Puerto Rico; therefore, be it

RESOLVED, BY THE SENATE OF THE ONE HUNDRED THIRD GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the United States Congress to take immediate action to clarify and amend the U.S. tax code to prevent the misuse of Puerto Rican tax incentives; and be it further

RESOLVED, That we urge any amendments to the tax code to preserve the original intent of promoting economic growth in Puerto Rico while preventing potential misuse and addressing the negative economic impacts on the local population; and be it further

RESOLVED, That we encourage collaboration between federal, state, and local governments, as well as with Puerto Rican authorities, to ensure that tax policies are fair, transparent, and effective; and be it further

RESOLVED, That we recommend the implementation of educational campaigns to inform the public about the proper use of tax incentives and the potential consequences of misuse in Puerto Rico; and be it further

RESOLVED, That suitable copies of this resolution be delivered to the President of the United States, the U.S. Senate Majority Leader, the U.S. Senate Minority Leader, the U.S. Speaker of the House, the U.S. House of Representatives Minority Leader, all members of the Illinois Congressional Delegation, and the Governor of Puerto Rico.