Referred to the House Committee on Ways and Means.
The bill amends Internal Revenue Code section 865 to provide that for individuals described in section 933 (bona fide Puerto Rico residents), income from digital assets—received via mining, staking, holding (including forks and airdrops), or from sale/exchange/disposition—shall not be treated as sourced within Puerto Rico. It defines "digital asset" as a cryptographically‑secured distributed ledger representation of value and treats financial interests in a digital asset as digital assets.
Progressives emphasize closing tax avoidance and fairness
Relative to its intended legislative type, this bill is a focused statutory amendment that clearly alters sourcing rules for digital-asset income of Puerto Rico residents and contains concrete definitional text, but it omits fiscal acknowledgement, anti-abuse provisions, and implementation oversight.
The bill amends Internal Revenue Code section 865 to provide that for individuals described in section 933 (bona fide Puerto Rico residents), income from digital assets—received via mining, staking, holding (including forks and airdrops), or from sale/exchange/disposition—shall not be treated as sourced within Puerto Rico.
It defines "digital asset" as a cryptographically‑secured distributed ledger representation of value and treats financial interests in a digital asset as digital assets.
The change applies to taxable years beginning after enactment.
Technically narrow and revenue-positive but politically sensitive to Puerto Rico and crypto interests; lacks compromise features and standalone priority.
Relative to its intended legislative type, this bill is a focused statutory amendment that clearly alters sourcing rules for digital-asset income of Puerto Rico residents and contains concrete definitional text, but it omits fiscal acknowledgement, anti-abuse provisions, and implementation oversight.
Progressives emphasize closing tax avoidance and fairness
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives emphasize closing tax avoidance and fairness
Likely supportive overall as a measure to close a perceived tax loophole that lets digital-asset income escape U.S. federal taxation.
Supporters would frame it as tax fairness and preventing wealthy taxpayers from shifting crypto income out of the federal base, while urging protections for Puerto Rican taxpayers and small participants.
Cautiously supportive if technical details and implementation minimize compliance burdens and avoid double taxation.
Would want clear IRS guidance, coordination with Puerto Rico, and estimates of revenue and administrative cost before full endorsement.
Likely opposed as an expansion of federal tax reach into Puerto Rico, raising concerns about overreach, harming Puerto Rico's competitiveness, and discouraging crypto innovation.
Would prefer allowing territorial tax rules or Puerto Rico jurisdiction to govern these matters.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically narrow and revenue-positive but politically sensitive to Puerto Rico and crypto interests; lacks compromise features and standalone priority.
The bill has not accumulated any surfaced votes yet.
Progressives emphasize closing tax avoidance and fairness
Technically narrow and revenue-positive but politically sensitive to Puerto Rico and crypto interests; lacks compromise features and standa…
Relative to its intended legislative type, this bill is a focused statutory amendment that clearly alters sourcing rules for digital-asset income of Puerto Rico residents and contains concrete definitional text, but it…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.