Development of Infrastructure, formerly Act 185-7

Among the objectives of the code of incentives is to strengthen the construction sector to make viable crucial works for the economic recovery and reconstruction of Puerto Rico. In order to qualify for this incentive, the code specifies the eligible activities as: improvements, restoration, or reconstruction of existing buildings or new construction in vacant lots in the historic areas of Puerto Rico and rents once they have been improved, restored, reconstructed, restructured or constructed, depending on the case. It also includes the construction and rehabilitation of social interest housing for sale or lease to low or moderate-income families and middle-class homes and properties for elderly people. It applies to developers of assisted housing for the elderly and to social interest housing developers approved and totally or partially subsidized by the Government of Puerto Rico.

Our White Paper on Development of Infrastructure -Chapter 7 of Subtitle B of the new code (formerly Act 185-7) describes all the tax benefits available, the exemption period, the evaluation criteria, and several requirements for the developers depending on the type of housing project.

commercial building