Sponsors (3)
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Treats many kinds of digital-asset income earned by bona fide Puerto Rico residents as not subject to U.S. federal income tax. It covers receipts from mining, staking, forks, airdrops, holding a digital asset, and sales or other dispositions, and it defines “digital asset” broadly as value recorded on a cryptographically-secured distributed ledger. The change applies to taxable years beginning after the date of enactment.
The bill gives Puerto Rico residents favorable, clarified tax treatment for digital-asset income—boosting local crypto activity and individual after-tax income—while risking federal revenue loss, tax-base erosion via relocation, administrative complexity, and perceived unfairness for mainland taxpayers.
Puerto Rico residents covered by section 933 would not owe U.S. tax on covered digital-asset income, increasing their after-tax income from mining, staking, airdrops, forks, or sales.
Puerto Rico residents and local crypto actors gain clearer tax treatment for financial interests in digital assets (including airdrops and forks), reducing uncertainty and compliance risk for crypto activity.
Puerto Rico could attract more crypto-related investment and economic activity because of the tax preference, potentially benefitting local businesses and job creation.
Mainland U.S. taxpayers and the federal budget could face higher tax burdens or reduced services if exempting digital-asset income for Puerto Rico reduces federal revenue.
High-income individuals could relocate to Puerto Rico to exploit the exemption, eroding the federal tax base and shifting tax obligations onto others.
IRS administration and enforcement could become more complicated, requiring new residency tests, digital-asset definitions, and rules to distinguish covered activities, raising compliance and enforcement costs.
Introduced April 21, 2025 by Nydia M. Velázquez · Last progress April 21, 2025