Governor announces approval of $554 million tax incentive.

“When will people receive their check or direct deposit? Before the end of May,” Gov. Jenniffer González Colón said Thursday.

By THE STAR STAFF

Gov. Jenniffer González Colón announced on Thursday that the Financial Oversight and Management Board has approved a $554 million tax incentive for eligible taxpayers in Puerto Rico.

“Some of these relief measures involve, for example, lowering tax rates: those previously subject to a 14% rate will see it drop to 12%, those at 25% will see it drop to 24% under this new schedule, and those paying 33% -- specifically those earning in excess of $100,000 but less than $150,000 -- will see their rate reduced to 29%,” the governor said during a press conference. “So, these are the changes in terms of the tax brackets; the Treasury Department will handle the actual calculations. Therefore, people do not need to perform any calculations themselves. The only action required is if you wish to provide your bank account details to receive this payment via direct deposit; this can be done through the SURI website. Starting Monday, SURI will send an email notification -- accessible via the SURI portal -- to those individuals who wish to enter the account number where they would like to receive this deposit, thereby enabling them to do so.”

“When will people receive their check or direct deposit? Before the end of May,” González Colón added. “On Monday, the notification phase begins for all 690,000 of these taxpayers, allowing them to provide their bank account details. If individuals have already provided a bank account -- the one they listed on their tax return to receive their refund -- that is the account into which the deposit will be made. Disbursements will be issued every two weeks until the process is complete -- naturally -- since we are still receiving tax returns filed in April. What this means is that, by summer, people will have received their checks, which they can use for whatever they deem necessary -- including back-to-school expenses and summer activities for their children.”

The governor went on to provide specific examples of how the relief incentive will play out for taxpayers in various income brackets and situations.

Those who do not have a bank account will receive their payment by check. In cases where taxpayers have outstanding debts with the Treasury Department or the Child Support Administration, the payment will first be applied to satisfy those obligations, and any remaining balance will be remitted to the taxpayer.