Puerto Rico's tax incentives, aimed at attracting wealthy Americans to the US territory, are under scrutiny. A Government Accountability Office report, released on Friday, suggests these exemptions might lead to some failing to meet federal tax obligations. The US House Natural Resources Committee Democrats requested the investigation amid concerns about creating an unfair tax haven for the ultra-wealthy.

The report reveals that incentives potentially worth hundreds of millions annually were granted from 2012 through 2024. IRS, however, faces challenges in oversight due to understaffing and gaps in communication with Puerto Rico. The audit indicates incomplete data on beneficiaries, raising questions about compliance and community contributions.

The incentives, launched in 2012 by former

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