By Erie365NewsWriter 
Washington, D.C., July 5, 2025 — President Donald Trump’s new tax plan, called the “Big Beautiful Bill,” is raising concerns over how it could hurt Puerto Rico’s economic recovery. The plan would remove a unique tax break that has helped attract private investment to the island since the Opportunity Zones program began.
Special Rule Set to End
The Opportunity Zones program was created in 2017 to encourage investment in distressed communities by offering tax breaks to investors. Puerto Rico currently benefits from a special rule under Section 1400Z-1 that allows all of its low-income census tracts to automatically qualify as Opportunity Zones. No other state or territory has this same blanket exception.
Trump’s bill would repeal this rule effective December 31, 2026. After that date, Puerto Rico would be required to follow the same limit as other states and territories, capping Opportunity Zone designations at 25 percent of its eligible low-income communities.
Stricter Limits for Everyone
The bill also adds new restrictions to tighten how Opportunity Zones work nationwide. One change would clarify that the 25 percent cap applies during any period, not just when zones are first designated. This would prevent states or territories from swapping tracts in or out to get around the limit.
Another proposed change would repeal the “contiguous tracts” rule. This rule currently allows certain census tracts to qualify for Opportunity Zone status if they border a low-income area, even if they do not meet the standard income or poverty requirements on their own. Removing this rule could further reduce the number of qualifying areas.
Impact on Puerto Rico’s Recovery
The Opportunity Zones program has brought millions of dollars in private investment to Puerto Rico. Projects supported by the program include new housing, infrastructure improvements, and local business growth. Critics argue that eliminating the special status could make it harder for Puerto Rico to attract investment, putting added pressure on communities that still face economic challenges.