On 14 May 2019, Governor of Puerto Rico signed the Senate Bill 1147 (the Opportunity Zones Development Act), offering tax incentives for investments in qualifying Opportunity Zones. The act permits the investors following benefits:
The new act includes a maximum investment credit of 25% transferable; a credit preference system for priority projects in Opportunity Zones and capital gains tax deferral for profits invested in a qualified opportunity fund on the Island under rules similar to those passed in the federal legislation.
An incentive framework is also offered for a 15-years period in order to achieve the economic development provided under this law that include 18.5% tax on the net income of an exempt business; dividend tax exemption; 25% exemption from patents and property taxes and 25% exemption from construction taxes. A tax exemption is also provided for interest accrued in connection with loans granted to qualifying businesses.