2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1005 - Computation of Taxable Income (§§ 30101 — 30157) › Subchapter C - Deductions (§§ 30121 — 30140) › § 30136 - Special deduction for certain individuals

(a) In the case of an individual whose main source of income consists of the income described in clauses (1), (2), (3), and (5) of subsection (a) of § 30101 of this title, or that part of clause (4) of said subsection related to pensions granted or to be granted by the retirement systems or funds subsidized by the Government of Puerto Rico, of annuities or pensions granted by the Government of the United States of America, and by the instrumentalities or political subdivisions of both governments, and pension, retirement or annuity plans granted by private employers, there shall be allowed as deduction, in addition to any other deduction provided by this part, a deduction determined as follows:
Taxable Year The deduction shall be: For taxable years beginning after December 31, 2010, but before January 1, 2012: $9,350 For taxable years beginning after December 31, 2011, but before January 1, 2013 $7,850 For taxable years beginning after December 31, 2012, but before January 1, 2014 $5,350 For taxable years beginning after December 31, 2013, but before January 1, 2015 $2,350
(b) In the case of married individuals, both whom work, file a joint return, and choose the optional tax computation provided in § 30063 of this title, the deduction established in subsection (a) shall be available for each one of the spouses individually; provided, that they comply with the requirements of such subsection.
(c) Limitation.— The total amount of the deduction provided in subsection (a) of this section shall be available for those individuals whose modified adjusted gross income does not exceed twenty thousand dollars ($20,000), provided that for each dollar of the modified adjusted gross income in excess of twenty thousand dollars ($20,000), the allowable deduction in subsection (a) shall be reduced as follows:
(1) For years beginning after December 31, 2010, but before January 1, 2012, the allowable deduction in subsection (a) shall be reduced by fifty cents (50¢) until it is reduced to zero.
(2) For years beginning after December 31, 2011, but before January 1, 2013, the allowable deduction in subsection (a) shall be reduced by forty-two cents (42¢) until it is reduced to zero.
(3) For years beginning after December 31, 2012, but before January 1, 2014, the allowable deduction in subsection (a) shall be reduced by twenty-eight point five cents (28.5¢) until it is reduced to zero.
(4) For years beginning after December 31, 2013, but before January 1, 2015, the allowable deduction in subsection (a) shall be reduced by twelve point five cents (12.5¢) until it is reduced to zero.
(d) This deduction shall not reduce the net income to less than zero.
(e) Deduction denial.— No deduction whatsoever shall be allowed under subsection (a) if the taxpayer earns a net income on account of interest or dividends, rents or royalties, the sale of capital stock, or any other type of income other than those described in clauses (1), (2), (3), and (5) of subsection (a) of § 30101 of this title or that part of clauses (4) of said subsection related to pensions granted or to be granted by the retirement systems or funds subsidized by the Government of Puerto Rico, of annuities or pensions granted by the Government of the United States of America, and by the instrumentalities or political subdivisions of both governments, and pension, retirement or annuity plans provided by private employers, in excess of five thousand dollars ($5,000) for the taxable year.
(f) Definitions.— For purposes of this section, the term “modified adjusted gross income” means the adjusted gross income as defined in § 30103 of this title, plus exempt income as provided in § 30102 of this title.
History —Jan. 31, 2011, No. 1, § 1033.16, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 35.