IV 

118TH CONGRESS 

2D SESSION H. RES. 1553 

Expressing the sense that the House of Representatives must take responsible 

and timely action to address the Federal tax loophole that allows Act 

22 decree holders to legally evade Federal taxes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 25, 2024 

Mrs. RAMIREZ (for herself, Ms. VELA ́ZQUEZ, Ms. OCASIO-CORTEZ, Ms. BUSH, 

Mr. KHANNA, Mr. GRIJALVA, Mr. GOLDMAN of New York, Mr. 

ESPAILLAT, Ms. TLAIB, Ms. LEE of California, Mr. MCGOVERN, and Mr. 

GARCI ́A of Illinois) submitted the following resolution; which was referred 

to the Committee on Ways and Means 

RESOLUTION 

Expressing the sense that the House of Representatives must 

take responsible and timely action to address the Federal 

tax loophole that allows Act 22 decree holders to legally 

evade Federal taxes. 

Whereas Puerto Rico is currently facing a crisis of displacement, tax evasion, and a lack of housing affordability, exacerbated by wealthy Americans gentrifying the island; 

Whereas the population of Puerto Rico decreased by 11.8 

percent from 2010 to 2020, during which time wealthy 

Americans relocated to the island to take advantage of 

tax breaks, fueling displacement; 


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•HRES 1553 IH 

Whereas the influx of wealthy Americans seeking tax breaks 

has oversaturated the housing market, driving up housing 

prices and reducing availability for long-term residents, 

as evidenced by the fact that the average 2-bedroom 

condo could be listed for $130,000 more in 2022 than in 

2017; 

Whereas gentrification, defined as a demographic and economic shift that displaces established working-class communities and communities of color in favor of wealthier 

newcomers and real estate development companies, is occurring on the island; 

Whereas American tax evaders, including but not limited to 

investors, are contributing to the displacement of Puerto 

Ricans, and worsening the shortage of housing inventory 

on the island; 

Whereas Act 22 and Federal tax loopholes have made Puerto 

Rico the only place where a wealthy American with no 

ties to the island can move and evade paying Federal 

taxes; 

Whereas Act 22 provisions, part of the broader ‘‘Puerto Rico 

Incentives Code’’, allow individuals who did not reside in 

Puerto Rico between 2006 and 2012 to request a variety 

of exemptions from the territorial government, including— 

(1) a 100 percent exemption from income tax on all 

income, dividends, and interest; and 

(2) a 100 percent exemption from income and capital gains taxes; 

Whereas the requirements for an individual to qualify for Act 

22 are minimal, including— 


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(1) not residing in Puerto Rico during the period 

from 2006 to 2012; 

(2) residing in Puerto Rico for at least 6 months before requesting a decree; 

(3) not having a tax domicile outside of Puerto Rico; 

(4) buying a house in Puerto Rico within 2 years of 

obtaining a decree; and 

(5) making an annual $10,000 contribution to 1 or 

more local nonprofit organizations; 

Whereas Act 22 does not require wealthy individuals to invest 

in the Puerto Rican economy, resulting in no positive 

outcome for Puerto Rican residents and merely enabling 

wealthy Americans to evade taxes; 

Whereas there have been instances of Act 22 beneficiaries 

creating their own nonprofit organizations to direct their 

annual $10,000 contribution, demonstrating dubious behavior and apathy towards the Puerto Rican people; 

Whereas Americans seeking a tax shelter in Puerto Rico contributed to a 600-percent increase in rent prices from 

July 2022 to September 2023, are privatizing lands that 

belong to the people, and are furthering the second-largest migration the island has seen; 

Whereas it seems that the number of Stateside residents 

moving to Puerto Rico to receive Act 22 benefits have 

grown significantly, with total beneficiaries increasing 

from 3,146 in late 2020, to 5,010 in early 2023, a nearly 

60-percent increase; 

Whereas Puerto Rico and its people should be empowered to 

exercise their right to self-determination, including the 

authority to create policies that protect and preserve 

their culture and the island itself; and 


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Whereas Puerto Rico and the Puerto Rican community deserve accessible housing, an economy that works for 

them, and oversight of their own affairs, without tax incentives working against the prosperity of the island and 

its people: Now, therefore, be it 

1 Resolved, That the House of Representatives shall act 

2 swiftly to minimize the revenue losses to the Federal, 

3 State, and territorial governments, and the illicit use of 

4 the parallel Federal and Puerto Rico tax regimes to avoid 

5 United States taxation. 

Æ 


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