Supporters including the Department of Economic Development and Commerce (DDEC), the Puerto Rico Home Builders Association, the Department of Housing and the Manufacturers Association filed their backing on Wednesday for Senate Bill 1514, Senate President Thomas Rivera Schatz’s measure to amend the local Opportunity Zones Incentives Code. The bill aims to protect existing designations and adjust the definitions of eligible zone, opportunity zone and fund to avoid contradictions in public policy.
Currently, designated areas cover about 98% of Puerto Rico’s territory. It redefines 'fund' so qualification depends on Code requirements and DDEC parameters rather than federal certification, after a 2025 federal change set designation rounds every 10 years starting January 1, 2027 and limited Puerto Rico to designating up to 25% of its eligible census tracts.
The DDEC reported 49 decrees granted under the Opportunity Zones, without disclosing their economic impact. Local incentives to be preserved include an 18.5% preferred income tax rate and a transferable tax credit of 5% to 25% on eligible investment, and funds must keep 90% of assets in properties located in Opportunity Zones. The bill adds housing for the working middle class and young professionals as public policy.
DDEC legal advisor Daniel Vélez Cabrera recommended clarifying which entity will certify and audit funds, setting minimum criteria for priority housing projects, and clear reinvestment rules, saying those matters should be settled in the law itself. Housing’s Lumar Ayala Molina said Housing maintains 28 projects with 4,420 units under LIHTC and 16 projects with 1,309 units under SFHDI, though not all would qualify as priority projects, and warned that keeping two different territorial boundaries under one name could confuse investors.
Both business associations proposed that applications be evaluated by DDEC’s Committee for the Review of Economic Incentives (CRIE), with final decisions by the secretary, replacing the interagency Priority Projects Committee they say has delayed approvals.