Puerto Rico unlocks $1.4B in Opportunity Zone projects
Puerto Rico’s Economic Development and Commerce secretary, Sebastián Negrón-Reichard, said Thursday that the agency is unblocking $1.4 billion in eligible investments and more than 2,000 jobs tied to Opportunity Zone projects across 13 municipalities in Puerto Rico.
As News is my Business reported earlier this week, Puerto Rico is approaching a key deadline to redesignate eligible census tracts, a process that will reduce the coverage area from 98% of the island to 25% by the end of 2026.
Speaking at his weekly briefing at the La Fortaleza executive mansion, Negrón-Reichard said that while 38 projects had already secured decrees under the Puerto Rico Economic Development and Opportunity Zones Act of 2019, most had been limited to a basic 5% tax credit. Only three projects had advanced to receive the additional credits available by law.
“Today we are recommending 29 additional projects for review by the committee in charge, while six projects did not request extra credits,” he said, noting that the applications cover projects approved between 2020 and 2023.
Under current regulations, projects may qualify for incremental credits of up to 25%, depending on categories such as education, health, housing, job creation, socioeconomic development or investments in land, buildings, machinery and equipment.
“We prioritized internal evaluations, revised interpretations, coordinated simultaneous reviews and worked with CPAs to establish clear guidelines,” Negrón-Reichard said.
Among the projects awaiting evaluation are more than 3,000 housing units, the rehabilitation of historic buildings and the redevelopment of former health centers. The municipalities impacted include San Juan, Guaynabo, Hatillo, Bayamón, Gurabo, Humacao, Río Grande, Caguas, Cabo Rojo, Cidra, Ponce and Vega Alta.
“These tax credits provide liquidity and build confidence for developers to invest in new projects,” Negrón-Reichard said, adding that more than 2,000 jobs are tied to the 38 projects, with some already generating employment.
The department is evaluating 18 additional requests and expects to resolve them by year’s end, while 12 applications were deemed ineligible.
Negrón-Reichard underscored the urgency of the timeline, noting that 98% of Puerto Rico remains designated as an Opportunity Zone through December 2026, after which the area will be reduced to 25%.
As previously reported, the recently enacted One Big Beautiful Bill Act permanently extended the federal Opportunity Zone program and added reforms meant to modernize the initiative, expand community impact and reshape investment strategy — particularly in Puerto Rico.
The Opportunity Zone program, created under the 2017 Tax Cuts and Jobs Act, is shifting from a temporary tax deferral mechanism to a permanent framework. The new law embeds the program into the U.S. tax code, strengthens compliance and reporting requirements, and calls for a nationwide redesignation of eligible census tracts by mid-2026.
The 10-year capital gains exclusion for investments held through Qualified Opportunity Funds remains in place, while some older incentives are being phased out.
