DDEC

Environmental and civic organizations say they are overwhelmed by the many legislative measures that would upend the permitting system, affect the environment and limit their participation in the review and legal challenges of development projects.

A judge ordered Puerto Rico’s Treasury Department to explain why it awarded an $8.7 million Lottery Bureau advertising contract to another agency, despite Digimedia receiving the highest score in the bidding process.

Earlier this year, the Department of Economic Development and Commerce touted the cancellation of 23 tax decrees in 2025 as a major achievement after auditing nearly 2,000 beneficiaries under Puerto Rico’s Incentives Code. But it did not revoke the decree of this resident investor, who had been found guilty of fraud in California last summer.

According to the Puerto Rico Tourism Company, the housing units proposed for the project outnumber the tourist lodging units by a ratio of two to one. The agency recommended that the developer reduce the number of residences to qualify for more tax credits.

The legal action follows the agency’s failure to provide public data on incentives, exemptions, and decrees granted to tourism-related businesses under Puerto Rico’s Incentives Code.

Act 22 requires resident investors to donate annually to nonprofit organizations in Puerto Rico. The CPI, using 2022 data, investigated multiple violations of this requirement, which is necessary to obtain the tax privilege.

El Gobierno prometió mano dura contra los infractores, una auditoría a cada beneficiario y cambios a la ley para requerir mayor inversión en Puerto Rico para otorgar el incentivo.