Puerto Rico's New Tax Break Lures Money as Expiration Date Looms
- Real estate investors flock to island to save on capital gains
- Built-in expiration for tax break may limit its effectiveness
Hurricane Maria exacerbated Puerto Rico’s economic woes and devastated its infrastructure
Photographer: Joe Raedle/Getty Images
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One of the biggest breaks created by last year’s tax law sits in Puerto Rico, a hurricane-ravaged island desperate for a recovery. But some residents fear tax history could repeat itself.
President Donald Trump’s overhaul sets up “opportunity zones” in underdeveloped economic areas that try to lure investment with the promise of generous tax benefits. Almost all of Puerto Rico was deemed a zone, essentially creating a 3,500-square-mile tax haven that the island’s governor hopes will bring more than $600 million in new investment.