On March 21, 2026, the Economic Development Commission of Ecuador's National Assembly voted seven to three in favor of approving a report for a second debate on a proposal to reform the Internal Tax Regime law. This reform aims to provide tax incentives for private sector donations of social interest housing. The initiative responds to the pressing need to address the housing deficit in the country, worsened by adverse climate events and other contingencies, encouraging private sector participation in housing solutions.

The legislative changes highlighted in the second report stress that the proposed incentives are supplementary and do not replace the constitutional obligations of the State regarding habitat and housing. These amendments aim to clarify that while encouraging private donations for social housing, the State retains its responsibility to provide adequate housing. The urgency of the situation necessitated quick legislative action to foster cooperation between the government and private enterprises in addressing housing shortages.

With the approval of this report, the Commission aims to foster a collaborative environment between the state and private sector actors focused on improving social housing. The anticipated implementation of these incentives is expected to facilitate the construction of more affordable housing units, thereby contributing to diminishing the existing housing deficit in the country, particularly amidst challenges such as climate-related disasters that exacerbate the housing crisis.