Ask A Question

Does Puerto Rico benefit from the Opportunity Zone program in the same way that other Qualified Opportunity Zone census tracts in the U.S. do?

Are there any differences?

  • Matthew Rappaport
    June 16, 2019

    There are no differences between the U.S. tax benefits for QOZs in Puerto Rico and the QOZs on the mainland. Puerto Rico received a special accommodation under the QOZ program insofar as almost all of the island is considered a QOZ.

  • Brad Cohen
    June 14, 2019

    No difference. The entire island is in the zone.

  • Paul Wassgren
    June 13, 2019

    Yes, more than 90% of Puerto Rico is an Opportunity Zone. In recent weeks, the Commonwealth of Puerto Rico passed legislation (drafted by DLA Piper) to reduce local taxes in combination with the federal tax benefits.

  • Erik Kodesch
    June 14, 2019

    I believe so. I fact, I think all of Puerto Rico is an Opportunity Zone, so an investment anywhere on the island should qualify.

  • Peter McNeil
    June 14, 2019

    The Opportunity Zone law gives no special advantages to Puerto Rico over any other Opportunity Zone in the United States. However, the Opportunity Zone does not interfere with other tax-advantaged programs that may be available to Puerto Rico.

  • Guy Maisnik
    June 13, 2019

    Puerto Rico benefits from the QOZ and then some. Under recent law, PR created rules for investing in Opportunity Zones consistent with the federal law, and created additional incentives: exemption from dividend taxation; 18.5 percent tax on the net income of an exempt business; 25 percent exemption on patents and property taxes; 25 percent exemption on construction taxes; maximum investment credit of 25 percent, which is transferable; a credit priority system; tax exemption for interest earned on loans to exempt businesses. Stated were capped at 25% of their low-income census tracts for QOZ designation. Puerto Rico was able to designate 100 percent of its low-income census tracts as Opportunity Zones, which impacts most of the island.