HILL TAX BRIEFING: Opportunity Zones Fall Short in Puerto Rico

Four years after the federal opportunity zone program took effect, Puerto Rico has designated just one opportunity zone despite 98% of the island’s census tracts being eligible for the program. It is in the San Juan financial district, with a large bank getting the tax break on commercial real estate development.

Puerto Rico’s sluggish effort to use its local opportunity zones to stimulate economic development echoes problems with the program itself, which critics say has steered tax breaks for development to already-emerging neighborhoods rather than truly needy ones.

Puerto Rico added regional tax incentive sweeteners to opportunity zone applicants, but ...