The Biden-Harris Administration shared a detailed report today outlining its economic achievements concerning Puerto Rico over the past four years.
“Four years prior, Puerto Rico was uncertain about the level of support it could rely on from the Federal Government following years of economic downturn and the aftermath of Hurricane Maria,” the announcement stated.
The report then shifted to highlight that “Puerto Rico is on the road to recovery,” pointing out that “[a]s Vice President Harris noted during her visit in March 2024, Puerto Rico has created over 100,000 new jobs since this Administration assumed office and has witnessed its first year of positive net migration since the beginning of the COVID-19 pandemic.”
A key point underscored in the final Biden-Harris Puerto Rico-related statement of the Biden presidency is the significant role that enhancements to the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) have played and are expected to continue playing in alleviating child poverty.
According to the report, “these initiatives are anticipated to decrease child poverty in Puerto Rico by 11% in the coming years.”
Eligible individuals have until April 15, 2025 to apply for funding under the 2021 Child Tax Credit expansion by submitting a tax return to the Internal Revenue Service.
The announcement released today referred to a 2022 White House statement containing details on the implementation of the new tax credits in Puerto Rico. That 2022 statement clarified:
“The American Rescue Plan Act (ARP) established historic, permanent reforms to the Child Tax Credit for families in Puerto Rico – extending the credit to 97% of families in Puerto Rico this year, compared to just 10% before the ARP.”
- Previously, only Puerto Rico families with three or more qualifying children were eligible for any Child Tax Credit benefit.
- This meant that before the American Rescue Plan, approximately 10% of families in Puerto Rico qualified for any Child Tax Credit.
- The ARP permanently altered that policy, allowing the CTC to be available to Puerto Rico families with fewer than three qualifying children who had been excluded beforehand. Consequently, 97% of Puerto Rico families with children are now eligible for the 2021 Child Tax Credit.
- For the year 2021, the ARP raised the Child Tax Credit to $3,600 per child under 6 and $3,000 per child aged 6-17 – and assured that lower-income families could access the full credit.
- Moreover, the ARP provided the first federal backing for Puerto Rico’s local Earned Income Tax Credit – enabling Puerto Rico to more than triple EITC benefits and broaden the EITC to additional workers.
Collectively, the ARP’s expansions of the CTC and EITC are estimated to yield over $1 billion in tax relief annually moving forward. These policies are set to benefit hundreds of thousands of families in Puerto Rico – with the families of over 500,000 children qualifying for the 2021 expanded CTC.
[An April 2022 White House] event buil[t] on extensive efforts by the White House and Treasury Department to facilitate access to the 2021 Child Tax Credit in Puerto Rico:
- The White House and Treasury Department, in collaboration with UnidosUS, established a Weekly CTC/EITC Puerto Rico Working Group, alongside the Youth Development Institute (IDJ), Espacios Abiertos, Hispanic Federation, and others, to promote awareness and participation rates among newly eligible families in Puerto Rico for the CTC and Local EITC. This group consists of representatives from the Puerto Rico government, Hacienda (the local tax authority), Treasury, IRS, and local stakeholders — including community organizations and advocates in Puerto Rico – working to eliminate obstacles to implementing tax credit policies. Cooperation among these groups has already resulted in over 35 local community events, navigator training sessions, and capacity-building initiatives for local officials and municipal staff. More than 240 municipal and state agency employees have received training to develop and execute integrated outreach strategies and offer free tax preparation services to low-to-middle-income communities.
- The White House and Treasury Department closely coordinated with the Governor of Puerto Rico, Mayors, foundations, and NGOs on the island to enhance awareness and CTC enrollments in Puerto Rico. The White House ARP Implementation Coordinator, White House Intergovernmental Affairs, and Treasury teams met twice at the White House with the Governor of Puerto Rico regarding CTC outreach strategies and held several discussions with leading Puerto Rican mayors. The White House ARP Implementation Team also arranged multiple meetings with foundations on the importance of investing in CTC outreach in Puerto Rico.
- The Administration introduced a dedicated section of ChildTaxCredit.gov for families in Puerto Rico and outreach partners. Childtaxcredit.gov/es/puerto-rico/ emphasizes the unique and unprecedented accessibility for families with children to benefit from the enhanced CTC and provides straightforward information on how to claim the credit in plain language, Spanish, and a mobile-friendly format.
- The Treasury Department and the White House focused on enhancing capacity for Volunteer Income Tax Assistance (VITA) Centers and Facilitated Self-Assistance (FSA) Sites, including navigator training and scaling up volunteer recruitment for tax preparation assistance in low-income communities. As of now, there are 43 tax assistance sites, including VITA and FSA on the island.
- The Administration amplified a comprehensive public campaign led by the Alliance for Economic Security in Puerto Rico, gathering support from state/local government. The Alliance, made up of the Hispanic Federation, Instituto del Desarrollo de la Juventud (IDJ), and Espacios Abiertos, united to launch ReclamaTuDineroPR.com to further promote awareness of these tax benefits. Additionally, the Administration has contributed to enhancing these efforts and pairing trained IRS volunteers with Mayors and municipalities to organize “Fill-a-thons” (“Llenatones” in Spanish) – to ensure all families with children are informed about the credit and can access tax filing assistance during local community events.
- Treasury provided training sessions for mayors in Puerto Rico on how to utilize ARP State & Fiscal Recovery Funds (SLFRF) for CTC and EITC outreach and tax filing assistance, working alongside the White House, the Government of Puerto Rico, the Association of Mayors, and the Federation of Mayors of Puerto Rico to optimize essential State and Local ARP funds for local governments in Puerto Rico.”
Recipients have until April 15, 2025, to secure the full 2021 Child Tax Credit by filing with the U.S. Internal Revenue Service (IRS).
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