Illinois General Assembly - Full Text of SR0551
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Full Text of SR0551  103rd General Assembly



SR0551LRB103 35027 LAW 64956 r


2    WHEREAS, Since 2012, tax incentives have been provided to
3investors, primarily mainland Americans, allowing them to pay
4no taxes on interest, dividends, or capital gains upon
5relocating to the Commonwealth of Puerto Rico; and
6    WHEREAS, These tax incentives were initially intended to
7promote economic growth and investment in Puerto Rico; and
8    WHEREAS, Despite the influx of investors, there is limited
9evidence of trickle-down benefits for the broader Puerto Rican
10economy, as reported by the Washington Post; and
11    WHEREAS, After a decade of these tax incentives, evidence
12from an Internal Revenue Service investigation indicates
13misuse of these incentives, leading to growing frustrations
14among Puerto Ricans due to the apparent favoritism; and
15    WHEREAS, Such misuse undermines the intent of the tax
16incentives, potentially displacing local residents and causing
17significant economic disparities; and
18    WHEREAS, Tax incentives and the right to return to land
19should only benefit Puerto Ricans in the diaspora and those
20who reside in the Commonwealth of Puerto Rico; therefore, be



SR0551- 2 -LRB103 35027 LAW 64956 r

3ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the United
4States Congress to take immediate action to clarify and amend
5the U.S. tax code to prevent the misuse of Puerto Rican tax
6incentives; and be it further
7    RESOLVED, That we urge any amendments to the tax code to
8preserve the original intent of promoting economic growth in
9Puerto Rico while preventing potential misuse and addressing
10the negative economic impacts on the local population; and be
11it further
12    RESOLVED, That we encourage collaboration between federal,
13state, and local governments, as well as with Puerto Rican
14authorities, to ensure that tax policies are fair,
15transparent, and effective; and be it further
16    RESOLVED, That we recommend the implementation of
17educational campaigns to inform the public about the proper
18use of tax incentives and the potential consequences of misuse
19in Puerto Rico; and be it further
20    RESOLVED, That suitable copies of this resolution be
21delivered to the President of the United States, the U.S.



SR0551- 3 -LRB103 35027 LAW 64956 r

1Senate Majority Leader, the U.S. Senate Minority Leader, the
2U.S. Speaker of the House, the U.S. House of Representatives
3Minority Leader, all members of the Illinois Congressional
4Delegation, and the Governor of Puerto Rico.