SAN JUAN – The secretary of the Department of Economic Development and Commerce (DDEC), Manuel Laboy Rivera reported on Friday that the request for priority projects is now available through the Single Business Portal (SBP), after the Regulation of Opportunity Zones came into force In Puerto Rico.
“Complying with the public policy commitment to provide effective tools to advance the economic development agenda around all of Puerto Rico, it is already duly registered in the Department of State, the Regulation of Opportunity Zones and available in the SBP the application for projects priority. Both documents are a step in favor of the economic development of Puerto Rico. It is estimated that in the long term, the investments resulting from the priority projects of the Opportunity Zones will generate over 600 million dollars in investments and countless jobs. With the implementation of this regulation, we establish the standards for the selection and execution of the various initiatives, as well as filing of compliance reports, among other processes that will allow us to demonstrate the island’s competitiveness to the world, ”Laboy Rivera stated in written communication .
The Puerto Rico Incentive Code in its Chapter 7 of Subtitle F, Sections 6070.54 – 6070.69, includes the provisions related to Opportunity Zones. Among these, a fixed income tax rate of 18.5 percent applicable to priority projects, exemptions in patents, property taxes and construction taxes of 25 percent, as well as a special process for the evaluation and granting of permits. .
The secretary of the DDEC, pointed out that “during the past year and a half the DDEC, together with the firm Kevane Grant Thornton, worked as a team to establish all the necessary regulations for the implementation of this economic development tool that can be used in the 98 percent of Puerto Rico. In this way, we advance the public policy of the administration of Governor Wanda Vázquez Garced, which contemplates a change of vision in the management of the incentives that Puerto Rico uses to promote economic activity, in such a way as to temper and refocus efforts to correct the problems that past strategies have fostered ”.
The Assistant Secretary of the Office of Business Incentives in Puerto Rico, Javier Bayón, who led the effort to draft the Regulation of Opportunity Zones, detailed that among the provisions of the regulation it is established that the tax credit for investment in Opportunity of up to 25 percent, will be distributed in four terms: 25 percent in the taxable year in which the Exempt Business completed the total construction of the project or began operations, the project does not require construction, and 25 percent of the total credit in the three (3) subsequent taxable years.
To obtain the Opportunity Zones Regulation, visit www.ddec.pr.gov/wpcontent/uploads/2020/01/Regdamientos_Zonas_de_Oportunidad.pdf. If you are interested in starting the application process for priority projects under the Puerto Rico Opportunity Zones, access https://ogpe.pr.gov/freedom/.
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