Governor Pedro Pierluisi announced that there would be a request from the Administration to extend the provisions of the Credit for Work available under the Federal Internal Pension Code.
“With this, the state benefit from the federal government to the American citizens living in the Isla” will be recorded, “said the communiqué.
Pierluisi said that, in order to increase the credit program for the Government of Puerto Rico’s Work with Federal Funds, it will have the effect of incentivizing the work and providing a level playing field for the working class.
The governor reiterates his approval to the administration of President Biden and the Congress for the approval of the American Rescue Plan, which amplifies the Contributing Credit program by Ingreso Devengado (EITC, by its seal in English) by approximately $ 612 million in funds proximos 10 years.
“The full extension to Puerto Rico of the Credit by Work will have a multiplier effect on our Island. The approval of this medium will allow our contributors to receive a fully incentive economic incentive to start the work. For this government, it is important to expand the resources available and redundant in benefits to our citizens, “said the governor, who added that the Department of Puerto Rico’s Department of Education is implementing its contribution to legislation. corresponding to the year 2021.
The legislative piece explains that, currently, the Puerto Rican Labor Credit establishes a contributing credit of 10 cents per dollar of income that a family generates, up to $ 15,000, for a family home with two children. However, while the intrusions of a continuous family are increasing, the credit is likely to be reduced at the bottom, which will increase the intrusive $ 34,750 intrusions. Although the existing calculation, the maximum benefit of the Credit for Work in Puerto Rico is $ 2,000 per year, for which this medium will equip the benefit received by the Credit for Work is paid by the federal government.
As a condition for receiving the approved federal funds, the governor of Puerto Rico must make annual payments of about $ 800 million to the beneficiaries of the EITC. Without embargo, for the 2019 fiscal year, the advertised credits are estimated at $ 115 million with a total of 258,000 taxpayers, which are very much due to the establishment of the established base. For this reason, it is necessary that the Governor of Puerto Rico approve directive legislation to amend the local EITC with the proposal to extend labor incentives.