Latest news with #taxIncentives
Yahoo
21-07-2025
- Business
- Yahoo
'Class war': outsiders moving to Puerto Rico trigger displacement
Gloria Cuevas thought she would live forever in her pink, century-old house on Puerto Rico's west coast -- but then her landlord decided to transform the home into an Airbnb. Cuevas left her home -- now purple and split in two -- and her beloved city for another further south, forced out by the rising cost of living and an explosion of short-term rentals on the US Caribbean island territory. Puerto Rico -- long a draw for sun-worshipping tourists -- is also a hotspot for foreign investment and offers tax incentives to attract outsiders. "At first, I couldn't come back here," Cuevas, 68, told AFP, gazing at the home she once made her own. "It made me feel sad and angry at the same time." Cuevas's experience is becoming an all too familiar tale across the island, where signs promote mansions for sale, and the Airbnb logo is plastered on homes where locals once lived. Intensifying Puerto Rico's gentrification are laws that encourage primarily wealthy mainland Americans to move there in exchange for preferential tax treatment. The program originally enacted in 2012 was meant to spur economic growth and attract investment on the island, an unincorporated territory under US control since 1898. Those relocating must acquire residency and buy property to keep the significant incentives -- but many Puerto Ricans as well as some US lawmakers say this is driving up housing prices and encouraging tax evasion. "Colonialism kills us, it suffocates us," Cuevas said. "It's a global theme. It's a class war." - 'Unfair' - Ricki Rebeiro, 30, moved to San Juan more than a year ago, bringing his packaging and marketing business that services cannabis companies with him. He told AFP that basing his work in Puerto Rico saves his company millions of dollars annually, and that he pays zero personal income tax -- what amounts to the equivalent of "a whole second income" that he says he tries to reinvest locally. "I believe that the locals are probably upset that they're not reaping the same benefits of somebody like me," said the entrepreneur, whose family is based in Pennsylvania and Oklahoma. The system is "unfair," Rebeiro said, "but I also don't believe that I should be the one to blame for that. I didn't structure the program." Puerto Ricans in recent years have slammed their government for what they say is a hyperfocus on outsiders at the expense of locals, as the rich -- including people like the famous content creator-turned-boxer Jake Paul -- move in. - 'This is ours' - In Cabo Rojo, a seaside city about an hour's drive south of Rincon on the island's western coast, some residents are taking the matter into their own hands. During a recent canvassing effort, a group of activists urged their neighbors to protest a massive development project called Esencia, which would transform more than 2,000 acres (810 hectares) of recreational land and more than three miles of beaches into a $2 billion luxury resort and residential development. Dafne Javier's family goes back generations in this area -- her great-grandfather was the last mayor in the municipality under Spanish occupation, and the first under US rule. The 77-year-old said the Esencia project would "totally change the landscape," creating a gated town within a town. Protesters say it would destroy the natural habitat of some endangered species, while exacerbating problems with potable water, electricity supply and trash pick-up. Project investors have called Puerto Rico "one of the most promising growth markets in the world" and vowed Esencia would create "thousands of jobs." But those jobs will be minimum wage, Javier predicted, and the wealthy newcomers "won't mix with us." Christopher Powers is married to a Puerto Rican with whom he has children, and has lived in Cabo Rojo for 20 years. "They have no idea what they're destroying, and if they do have an idea what they're destroying, then they should be ashamed," he told AFP of the developers. "Not only is it ecologically destructive, not only will it be an economic disaster for those of us who live here, but it's also against the sort of spirit or values of the Caborojinos." Cuevas is hopeful her story and others like it will crystallize for her fellow Puerto Ricans what they stand to lose. "We have to keep fighting. We have to educate our youth. Have you heard of Bad Bunny?" she said, referring to the Puerto Rican global superstar whose music and current residency in San Juan has amplified discussion of gentrification and cultural dilution, on the island and beyond. "This is ours," Cuevas said. "We're not going to leave." mdo/sst
France 24
21-07-2025
- Business
- France 24
'Class war': outsiders moving to Puerto Rico trigger displacement
Cuevas left her home -- now purple and split in two -- and her beloved city for another further south, forced out by the rising cost of living and an explosion of short-term rentals on the US Caribbean island territory. Puerto Rico -- long a draw for sun-worshipping tourists -- is also a hotspot for foreign investment and offers tax incentives to attract outsiders. "At first, I couldn't come back here," Cuevas, 68, told AFP, gazing at the home she once made her own. "It made me feel sad and angry at the same time." Cuevas's experience is becoming an all too familiar tale across the island, where signs promote mansions for sale, and the Airbnb logo is plastered on homes where locals once lived. Intensifying Puerto Rico's gentrification are laws that encourage primarily wealthy mainland Americans to move there in exchange for preferential tax treatment. The program originally enacted in 2012 was meant to spur economic growth and attract investment on the island, an unincorporated territory under US control since 1898. Those relocating must acquire residency and buy property to keep the significant incentives -- but many Puerto Ricans as well as some US lawmakers say this is driving up housing prices and encouraging tax evasion. "Colonialism kills us, it suffocates us," Cuevas said. "It's a global theme. It's a class war." 'Unfair' Ricki Rebeiro, 30, moved to San Juan more than a year ago, bringing his packaging and marketing business that services cannabis companies with him. He told AFP that basing his work in Puerto Rico saves his company millions of dollars annually, and that he pays zero personal income tax -- what amounts to the equivalent of "a whole second income" that he says he tries to reinvest locally. "I believe that the locals are probably upset that they're not reaping the same benefits of somebody like me," said the entrepreneur, whose family is based in Pennsylvania and Oklahoma. The system is "unfair," Rebeiro said, "but I also don't believe that I should be the one to blame for that. I didn't structure the program." Puerto Ricans in recent years have slammed their government for what they say is a hyperfocus on outsiders at the expense of locals, as the rich -- including people like the famous content creator-turned-boxer Jake Paul -- move in. 'This is ours' In Cabo Rojo, a seaside city about an hour's drive south of Rincon on the island's western coast, some residents are taking the matter into their own hands. During a recent canvassing effort, a group of activists urged their neighbors to protest a massive development project called Esencia, which would transform more than 2,000 acres (810 hectares) of recreational land and more than three miles of beaches into a $2 billion luxury resort and residential development. Dafne Javier's family goes back generations in this area -- her great-grandfather was the last mayor in the municipality under Spanish occupation, and the first under US rule. The 77-year-old said the Esencia project would "totally change the landscape," creating a gated town within a town. Protesters say it would destroy the natural habitat of some endangered species, while exacerbating problems with potable water, electricity supply and trash pick-up. Project investors have called Puerto Rico "one of the most promising growth markets in the world" and vowed Esencia would create "thousands of jobs." But those jobs will be minimum wage, Javier predicted, and the wealthy newcomers "won't mix with us." Christopher Powers is married to a Puerto Rican with whom he has children, and has lived in Cabo Rojo for 20 years. "They have no idea what they're destroying, and if they do have an idea what they're destroying, then they should be ashamed," he told AFP of the developers. "Not only is it ecologically destructive, not only will it be an economic disaster for those of us who live here, but it's also against the sort of spirit or values of the Caborojinos." Cuevas is hopeful her story and others like it will crystallize for her fellow Puerto Ricans what they stand to lose. "We have to keep fighting. We have to educate our youth. Have you heard of Bad Bunny?" she said, referring to the Puerto Rican global superstar whose music and current residency in San Juan has amplified discussion of gentrification and cultural dilution, on the island and beyond. "This is ours," Cuevas said. "We're not going to leave." © 2025 AFP
News.com.au
21-07-2025
- Business
- News.com.au
'Class war': outsiders moving to Puerto Rico trigger displacement
Gloria Cuevas thought she would live forever in her pink, century-old house on Puerto Rico's west coast -- but then her landlord decided to transform the home into an Airbnb. Cuevas left her home -- now purple and split in two -- and her beloved city for another further south, forced out by the rising cost of living and an explosion of short-term rentals on the US Caribbean island territory. Puerto Rico -- long a draw for sun-worshipping tourists -- is also a hotspot for foreign investment and offers tax incentives to attract outsiders. "At first, I couldn't come back here," Cuevas, 68, told AFP, gazing at the home she once made her own. "It made me feel sad and angry at the same time." Cuevas's experience is becoming an all too familiar tale across the island, where signs promote mansions for sale, and the Airbnb logo is plastered on homes where locals once lived. Intensifying Puerto Rico's gentrification are laws that encourage primarily wealthy mainland Americans to move there in exchange for preferential tax treatment. The program originally enacted in 2012 was meant to spur economic growth and attract investment on the island, an unincorporated territory under US control since 1898. Those relocating must acquire residency and buy property to keep the significant incentives -- but many Puerto Ricans as well as some US lawmakers say this is driving up housing prices and encouraging tax evasion. "Colonialism kills us, it suffocates us," Cuevas said. "It's a global theme. It's a class war." - 'Unfair' - Ricki Rebeiro, 30, moved to San Juan more than a year ago, bringing his packaging and marketing business that services cannabis companies with him. He told AFP that basing his work in Puerto Rico saves his company millions of dollars annually, and that he pays zero personal income tax -- what amounts to the equivalent of "a whole second income" that he says he tries to reinvest locally. "I believe that the locals are probably upset that they're not reaping the same benefits of somebody like me," said the entrepreneur, whose family is based in Pennsylvania and Oklahoma. The system is "unfair," Rebeiro said, "but I also don't believe that I should be the one to blame for that. I didn't structure the program." Puerto Ricans in recent years have slammed their government for what they say is a hyperfocus on outsiders at the expense of locals, as the rich -- including people like the famous content creator-turned-boxer Jake Paul -- move in. - 'This is ours' - In Cabo Rojo, a seaside city about an hour's drive south of Rincon on the island's western coast, some residents are taking the matter into their own hands. During a recent canvassing effort, a group of activists urged their neighbors to protest a massive development project called Esencia, which would transform more than 2,000 acres (810 hectares) of recreational land and more than three miles of beaches into a $2 billion luxury resort and residential development. Dafne Javier's family goes back generations in this area -- her great-grandfather was the last mayor in the municipality under Spanish occupation, and the first under US rule. The 77-year-old said the Esencia project would "totally change the landscape," creating a gated town within a town. Protesters say it would destroy the natural habitat of some endangered species, while exacerbating problems with potable water, electricity supply and trash pick-up. Project investors have called Puerto Rico "one of the most promising growth markets in the world" and vowed Esencia would create "thousands of jobs." But those jobs will be minimum wage, Javier predicted, and the wealthy newcomers "won't mix with us." Christopher Powers is married to a Puerto Rican with whom he has children, and has lived in Cabo Rojo for 20 years. "They have no idea what they're destroying, and if they do have an idea what they're destroying, then they should be ashamed," he told AFP of the developers. "Not only is it ecologically destructive, not only will it be an economic disaster for those of us who live here, but it's also against the sort of spirit or values of the Caborojinos." Cuevas is hopeful her story and others like it will crystallize for her fellow Puerto Ricans what they stand to lose. "We have to keep fighting. We have to educate our youth. Have you heard of Bad Bunny?" she said, referring to the Puerto Rican global superstar whose music and current residency in San Juan has amplified discussion of gentrification and cultural dilution, on the island and beyond. "This is ours," Cuevas said. "We're not going to leave."
The Verge
01-07-2025
- Business
- The Verge
The GOP's big spending bill could kill renewable energy projects
Senate Republicans today passed a sweeping spending bill that narrowly avoided punitive tax measures on renewable energy but still threatens to stall its growth in the US. After wrangling over hundreds of amendments for more than 24 hours in a so-called 'vote-a-rama' on Monday and Tuesday, Senate Republicans advanced the bill with provisions that make it near impossible for many renewable energy projects to qualify for tax incentives Congress passed in 2022. But a last-minute amendment eliminated a proposal to impose a new excise tax on solar and wind projects, which industry groups and advocates warned could have done even more to cut jobs and raise electricity bills. The fate of renewable energy projects — many of them in Republican districts — was a major sticking point that nearly stopped GOP lawmakers from reaching an agreement on the 'One Big Beautiful Bill Act' that's a key pillar of Donald Trump's agenda. As passed, the Senate bill could have wide-ranging effects on many Americans' lives, including cuts to Medicaid and food assistance programs, a spectrum auction that could slow down Wi-Fi speeds, massive funding increases for Trump's mass deportation campaign, and much more. (A 10-year moratorium on state AI laws was dropped at the last minute.) It's now headed back to the House to vote on any changes that have been made to the text since it passed its own version of the bill in May. The fate of renewable energy projects — many of them in Republican districts — was a major sticking point 'There's this push and pull between [GOP] members who … see the importance of doing things for their constituents, and a kind of ideological argument at a national level' that vilifies wind and solar energy, says Nat Keohane, president of the Center for Climate and Energy Solutions (C2ES). Clean energy and climate advocates are still outraged by the bill's slashing of incentives for renewables — on top of other language that gets rid of energy efficiency programs, guts protections for public lands, and winds down tax credits for electric vehicles. The bill nearly passed with a measure that could have devastated renewable energy companies. On Friday night, a surprise proposal was added for an excise tax on solar and wind projects. The tax would have essentially penalized developers who failed to meet requirements barring 'material assistance from prohibited foreign entities.' In other words, they'd have needed to prove that their supply chains weren't tainted by any materials or business ties to foreign governments the Trump administration deemed unacceptable — including China, which dominates supply chains for solar components and wind turbines. 'It's almost spiteful,' Keohane says of the plan. The proposed tax was dropped this morning. But some advocates worry that introducing and removing the excise tax was a red herring, drawing attention away from other measures that could still derail renewable energy projects. Most prominently, the bill sets aggressive deadlines for any wind and solar developers hoping to take advantage of Biden-era tax credits for carbon-pollution-free energy. Biden committed the US to slashing greenhouse gas pollution roughly in half from peak levels by the end of the decade under the Paris Agreement. To reach that goal, Congress passed the Inflation Reduction Act (IRA), which expanded tax credits for pollution-cutting technologies including renewables, in 2022. Today, the Senate passed language that stipulates that solar and wind projects would need to either start construction within a year of the bill's enactment or be placed in service by 2027 in order to qualify for IRA tax credits. Many projects would struggle to meet that truncated timeline given the long lead times needed to secure financing and permits and connect to the power grid. Republican districts actually stand to benefit the most from IRA incentives for new solar and wind farms and factories. The tax bill's future seemed to hinge largely on getting Sen. Lisa Murkowski (R-AK) on board with these limits, as well as cuts to Medicaid and food assistance programs. Murkowski co-sponsored the amendment to toss out the excise tax on renewables and eventually voted in favor of the bill — giving Republicans the 51-50 vote they needed to succeed (with Vice President JD Vance casting the tiebreaking vote). The fact that solar and wind — favorite punching bags of Trump and other right-wing culture warriors — were targeted rather than other carbon-pollution-free sources of electricity, like nuclear reactors, is telling. Trump, who campaigned with support from the fossil fuel industry, has been particularly vitriolic against wind and solar energy. Misleading claims about renewable energy projects harming wildlife and inaccurate claims about wind and solar leading to power outages have been flagged by researchers as leading talking points in disinformation campaigns about climate change. Secretary of Energy Chris Wright repeated similar tropes in an op-ed he published in the New York Post last week in support of the bill. Before Trump tapped him for his current role, Wright was CEO of Liberty Energy, a major oil and gas service provider that claims that roughly 10 percent of total US primary energy production comes from wells it fracks. Wright also used to sit on the board of a nuclear energy startup with OpenAI CEO Sam Altman. Trump has signed executive orders aimed at speeding the development of new nuclear technologies. Tech giants, including Google, Microsoft, Meta, and Amazon, are also banking on nuclear energy to power data centers that are expanding to support the computing needs of AI. The growth of AI, domestic manufacturing, and the electric vehicle industry has led to electricity demand jumping for the first time in more than a decade in the US. That issue — on top of the health and climate risks posed by fossil fuel pollution — is a big reason why advocates say this is the worst time to kill new renewable energy projects. It could take years or decades to commercialize new nuclear technologies, but wind turbines and solar panels are already mature technologies. 'At a time when we need new energy more than ever, Republicans are punishing the plentiful wind and solar power that can be quickly added to the grid,' Manish Bapna, president of the nonprofit Natural Resources Defense Council, said in a press release. Solar and wind together reached a milestone last year, when they produced more electricity than coal for the first time in the US. Gas still makes up the biggest chunk of the US electricity mix, however, at around 40 percent of power generation. 'The intentional effort to undermine the fastest-growing sources of electric power will lead to increased energy bills, decreased grid reliability, and the loss of hundreds of thousands of jobs,' American Clean Power Association CEO Jason Grumet said in a press release. The Senate vote on this bill also reignited Trump's feud with Tesla CEO Elon Musk. Elon Musk posted on X over the weekend that 'a massive strategic error is being made right now to damage solar/battery that will leave America extremely vulnerable in the future' as he renewed calls to create a new political party.
Yahoo
01-07-2025
- Business
- Yahoo
Solar Stocks Plunge on Credit Expiry--Sunrun, First Solar Defy the Downturn
July 1 - Most of the Solar stocks plunged on Monday after the Senate's draft tax-and-spending bill accelerated the phase?out of renewable energy credits and hit Chinese imports with a new levy, but why did Sunrun and First Solar surge? Warning! GuruFocus has detected 5 Warning Sign with NXT. The proposal would end federal tax incentives for large?scale wind and solar projects on Dec. 31, 2027, two years sooner than before, a move that rattled developers and sent utility installers lower. Residential solar credits would also expire Dec. 31 of this year, mirroring the House version. A tariff on components from China, the world's top supplier of panels and inverters, was added to encourage U.S. manufacturing by making domestic products comparatively cheaper. Sunrun (NASDAQ:RUN), the largest U.S. residential installer, climbed more than 5% as the bill extends certain investment tax credits for companies using non?Chinese equipment. First Solar (NASDAQ:FSLR) jumped 9% on expectations that import duties will boost demand for its domestically made panels. Nextracker (NASDAQ:NXT) and SolarEdge (NASDAQ:SEDG) also rose after analysts pointed to similar advantages. But project developers warn that tighter deadlines and extra levies may shrink the pipeline of future installations and drive up consumer costs. Industry groups argue the changes could stall America's clean?energy growth. Enphase Energy (NASDAQ:ENPH) slid about 3%, NextEra Energy (NYSE:NEE) dropped 5% and AES (NYSE:AES) lost 6% as investors weighed the broader impact. The final text may still shift once lawmakers reconcile House and Senate versions, leaving the outlook for U.S. solar in flux. This article first appeared on GuruFocus. Sign in to access your portfolio
