About OZ 2.0 in Puerto Rico
What's happening
The One, Big, Beautiful Bill Act of 2025 made the federal Opportunity Zone program permanent. Puerto Rico's old "all-island auto-designation" expired with it. Going forward, the Governor must nominate up to 178 specific census tracts (roughly 25% of the 712 that the U.S. Treasury identified as eligible under the new income criteria).
DDEC opened a public comment window. Anyone with a stake in the island's economy — investors, developers, municipal leaders, farmers, residents — can recommend tracts for designation. Submissions must reach oppzones@ddec.pr.gov by 30 May 2026.
Why rural matters more this time
OZ 2.0 introduces the Qualified Rural Opportunity Fund (QROF). Investors who put deferred capital gains into a QROF receive a 30% basis step-upafter five years — three times the 10% available in standard funds. That's the largest difference Congress has built into the OZ program in seven years.
QROFs only form if there's enough rural OZ inventory to deploy into. Of Puerto Rico's 712 eligible tracts, 243 qualify as rural under the federal definition (outside cities and adjacent urbanized areas with populations over 50,000). If the Governor designates only a handful, no fund will form. If the Governor designates ≥150, Puerto Rico becomes the premier rural OZ destination in the U.S. — bigger than any single mainland state for this strategy.
What this tool does
- Shows every Puerto Rico census tract on a map.
- Color-codes them: rural eligible (the priority), non-rural eligible, and not eligible.
- Lets you find specific tracts by address, ZIP, municipio, or tract number.
- Gives you demographic context (population, income, poverty, jobs) for each.
- Builds a comment letter to DDEC anchored on the "≥150 rural" ask plus the tracts you personally selected.
Sources
- U.S. Treasury — Revenue Procedure 2026-14 Appendix (eligible tracts & rural status): rp-26-14-appendix.xlsx
- U.S. Census Bureau — TIGER/Line 2024 census tract geometry (state FIPS 72)
- Urban Institute — "Data to Inform 2026 Opportunity Zone Selections" (October 2025) for demographic enrichment
About Monllor Capital
Monllor Capital Partners is the sponsor of PROZ II, a Puerto Rico-focused Qualified Opportunity Fund. We built this tool because the OZ 2.0 designation decision is a once-in-a-decade choice and the public deserves a way to weigh in. Learn more at monllorcapital.com.
This tool is a public service. It does not provide legal, tax, or investment advice.