What is House Bill 2172?
A piece of legislation that amends the Puerto Rico Incentives Code to encourage, through tax incentives, the development of housing in abandoned buildings in urban centers around the Island. It was signed by Gov. Pedro Pierluisi on Aug. 28.
What is the goal?
The bill seeks to revitalize urban centers by converting abandoned buildings into affordable residential properties for sale or long-term rental, addressing the housing shortage and reactivating economic activity in urban areas.
What are the main incentives?
Preferential Rate of 4% on Income Tax from sales or leases.
Exemptions:
50% on municipal licenses.
75% on municipal and state property taxes.
Tax Credit: 40% on investment in residential properties.
Important: Unused credits may be carried over to future years.
Requirements for developers seeking to qualify:
Project Cost: More than $1 million (not including property purchase).
Property Status: Must be in a state of abandonment.
Residential Units: At least seven units must be made habitable.
Leases: Contracts must last at least six months to prevent short-term rentals.
Deadlines:
Construction start: Must begin on or after July 1, 2024.
Application submission: Before Dec. 31, 2025, to the Departamento de Desarrollo Económico y Comercio (DDEC).
How to apply: Details pending from the Departamento de Desarrollo Económico.
This content was translated with the assistance of Artificial Intelligence (AI).
