San Juan Economic Transformation Plan begins implementation
By THE STAR STAFF
San Juan Mayor Miguel Romero Lugo announced Wednesday that the San Juan Economic Transformation Plan is officially in its implementation phase, following the enactment of its Administrative Guidelines on Oct. 1.
In its first few weeks, the program has already received 20 applications from businesses, which are currently under evaluation for access to economic and tax incentives aimed at business establishment, modernization and expansion.
“Several months ago, we presented our vision to transform how San Juan utilizes its economic development tools,” Romero Lugo stated. “Today, that vision is being implemented. We already have the rules, the evaluation mechanisms, and the first applications from business owners interested in taking advantage of these incentives. Now begins the most important stage: converting these tools into investment, jobs, and concrete economic activity for our city.”
The plan is part of the first review in 20 years of the San Juan Municipality’s Economic Development Code and seeks to promote the establishment, strengthening, modernization and expansion of businesses, attract new investments, create and retain jobs, and revitalize spaces with the potential to generate economic activity.
Eligible businesses may apply for economic incentives of up to $150,000 and municipal exemptions of up to 100%, depending on the nature of the project, its category, and the corresponding evaluation. For small and midsize enterprises (SMEs) in strategic sectors, the standard amounts may reach up to $75,000, while other businesses within those sectors may apply for up to $150,000 per business per fiscal year.
The San Juan Economic Transformation Plan identifies six strategic economic sectors: creative industries, culinary routes, specialized health services, knowledge-intensive professional services, information technologies, and specialized experiential tourism. It also allows for the consideration of projects belonging to other eligible economic activities that demonstrate economic impact and meet the established requirements.
“This stage allows us to move from program design to the evaluation of specific projects,” stated Pablo Rovira Bonnin, director of the municipal Department of Economic Development and Tourism. “Each application will be analyzed on its merits, taking into consideration the project’s viability, the proposed investment, the jobs it can create or retain, and its economic impact. Our job will be to support entrepreneurs throughout this process and ensure that these tools are used strategically to generate economic activity in San Juan.”
The incentives may be used, according to the conditions established in the plan’s administrative guidelines, for business development, acquisition of equipment and machinery, inventory, licenses, permits, insurance, payroll and certain essential services. The plan also includes tax benefits related to municipal licenses, personal and real property taxes, and construction fees.
The benefits will not be automatic. Each application will be evaluated considering, among other factors, the project’s viability, private investment, job creation or retention, justified expenses, program criteria, and the availability of funds. Once approved, the benefits will be formalized through an economic transformation decree that will establish the commitments of both the business and the municipality.
The plan also includes a component aimed at revitalizing commercial and urban spaces. Projects located in Río Piedras, municipal facilities, and strategic areas may be considered, as well as initiatives to recover vacant, abandoned, or declared public nuisance properties and return them to productive uses. Projects that acquire, restore, and utilize a property declared a public nuisance may be considered for additional tax benefits, subject to evaluation and approval.
