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 displace-
ment, tax evasion, and a lack of housing affordability, ex-
acerbated 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 eco-
nomic shift that displaces established working-class com-
munities and communities of color in favor of wealthier 
newcomers and real estate development companies, is oc-
curring 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, includ-
ing— 
(1) a 100 percent exemption from income tax on all 
income, dividends, and interest; and 
(2) a 100 percent exemption from income and cap-
ital gains taxes; 
Whereas the requirements for an individual to qualify for Act 
22 are minimal, including— 
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•HRES 1553 IH 
(1) not residing in Puerto Rico during the period 
from 2006 to 2012; 
(2) residing in Puerto Rico for at least 6 months be-
fore 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 be-
havior and apathy towards the Puerto Rican people; 
Whereas Americans seeking a tax shelter in Puerto Rico con-
tributed 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-larg-
est 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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•HRES 1553 IH 
Whereas Puerto Rico and the Puerto Rican community de-
serve accessible housing, an economy that works for 
them, and oversight of their own affairs, without tax in-
centives working against the prosperity of the island and 
its people: Now, therefore, be it 
Resolved, That the House of Representatives shall act 
swiftly to minimize the revenue losses to the Federal, 
State, and territorial governments, and the illicit use of 
the parallel Federal and Puerto Rico tax regimes to avoid 
United States taxation. 
Æ 
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