Puerto Rico, like other U.S. jurisdictions, was included in the designation of Qualified Opportunity Zones (”QOZ”). Unlike the states, which could only designate 25 percent of their low-income areas as QOZ, Puerto Rico was able to designate 100 percent of its low-income areas. Thus, out of the nearly 8,700 QOZs, 863 are in Puerto Rico.
The primary purpose of the Opportunity Zones program is to attract investment to designated areas. Therefore, Qualified Opportunity Funds (”QOF”) must maintain at least 90% of the assets contributed by investors in qualified opportunity zone property (“QOZP”).
In this article, we will provide several examples demonstrating the practical application of the terms and requirements we have been discussing in our first two parts.