Puerto Rico Governor Ricardo Rosselló Nevares has introduced to the Legislative Assembly creating incentives that promote opportunity zone investments in Puerto Rico.
State governors can designate up to 25 percent of census tracts that either have poverty rates of at least 20 percent or median family incomes of no more than 80 percent of statewide or metropolitan-area family income.
The governor said that efforts carried out with Resident Commissioner Jennifer González resulted in 95 percent of Puerto Rico being designated as a qualified opportunity zone.
“This is one of the best economic development tools we count on and we will maximize it, offering incentives that promote private investment. For this, we have to introduce this piece of legislation in order to establish the program in Puerto Rico,” said Nevares.
The bill proposes an incentives framework for a period of 15 years, similar to other incentives already offered in Puerto Rico.
Among those proposed are a 20 percent tax on the net income of an exempt business; exempt-interest dividends; partial exemption in license fees and property taxes; 100 percent exemption from construction taxes; and the creation of a transferable investment credit of up to 15 percent for priority projects.
The bill also provides deferred capital gains taxation for residents of Puerto Rico who invest in a qualified opportunity fund on the island, as well as a tax exemption for interest accrued on loans to exempt businesses.
