The tax exemptions that the government of Puerto Rico intends to extend to investors through the Opportunity Zones Act “may not comply” with the Fiscal Plan. Tax credits of up to 25% and exemptions in the payment of municipal taxes were some of the red flags raised by the Fiscal Control Board as a “cause for concern.”
“There are provisions of the law that apparently make it inconsistent with the government’s Fiscal Plan… The municipal exemption provision could be burdensome to the municipalities,” Fiscal Control Board Spokesman Edward Zayas told the Center for Investigative Journalism (CPI, in Spanish). Former Gov. Ricardo Rosselló signed the Opportunity Zones Act on May 14 but it has not been enforced because it still lacks a regulation for its implementation. Although so far this law is practically null, in August the government approved a list of commercial activities that could be recognized as Priority Projects in Opportunity Zones.