Puerto Rico governor sends OZ bill to Legislative Assembly

Due to the preferential treatment created for Puerto Rico in US Code Section 1400Z-1(b)(3), nearly the entire island is an opportunity zone. Governor Ricardo Roselló has estimated that the opportunity zones initiative “has the potential to inject more than $600 million in new investments into the local economy.”

Earlier this week, the governor sent a bill to the U.S. territory’s Legislative Assembly that would establish advantageous tax treatment for new investments in Puerto Rico’s opportunity zones.

According to Caribbean Business:

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.

Read more: Puerto Rico gov sends legislation to enable Opportunity Zones