Chile: Flagship pro-capex bill clears the Senate

Research evidence excerpt

Chile: Flagship pro-capex bill clears the Senate

J P M O R G A N Latin America Economic Research

16 July 2026

Chile

Flagship pro-capex bill clears the Senate

Economic and Policy Research

Diego W. Pereira

(1-212) 834-4321

diego.w.pereira@jpmorgan.com

J.P. Morgan Securities LLC

The Senate approved the administration’s flagship reactivation and pro-

investment bill, with the government’s 26-vote coalition holding together through

the final quorum vote. The package combines near-term fiscal support, including

reconstruction spending, a phased corporate tax cut and several targeted tax breaks,

with measures aimed at improving the investment climate through a new tax-

stability regime and streamlined environmental permitting.

The bill now returns to the Chamber of Deputies, which must approve the Senate’s

amendments before it can become law. If deputies reject any of the changes, the

legislation will move to a mixed committee. Our base case remains that the Lower

House will ratify the Senate’s revisions. One risk worth highlighting is the

possibility of a Constitutional Tribunal challenge, something opposition parties

have already signaled they may pursue once the bill clears Congress.

Whether the package ultimately delivers a meaningful growth boost will depend

on its ability to unlock investment that would otherwise have been delayed. In our

base case, we have assumed the approval of the bill as an anchor for the recovery

of economic activity momentum in the second half of the year, and the forecast for

above potential growth next year.

What the Senate approved

After three months in Congress, the bill the government calls the Plan de

Reconstrucción Nacional y Desarrollo Económico y Social, and everyone else

calls the miscellaneous law, cleared the Senate largely intact.