An Analysis of Potential Tax Incentives to Increase Charitable Giving in Puerto Rico

Brief

An Analysis of Potential Tax Incentives to Increase Charitable Giving in Puerto Rico

In Brief

Abstract

This policy brief summarizes the findings of a larger report on potential tax incentives to increase charitable giving in Puerto Rico. Improved incentives for private charitable giving would strengthen nonprofit organizations in Puerto Rico. Taxpayers may choose between a 100 percent deduction for contributions over 3 percent of adjusted gross income (AGI) or a 33 percent deduction for contributions with no floor. Deductions may not exceed 15 percent of AGI. Removing the 15 percent ceiling would be a relatively cost effective way of encouraging more giving.

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