Economic Outlook 2026 – How Puerto Rico Businesses Can Prepare Before Year-End
As 2025 comes to a close, Puerto Rico’s business landscape stands at a decisive turning point. After years of economic uncertainty, key indicators suggest that 2026 could mark a period of cautious growth and renewed financial stability.
However, this recovery will only benefit the companies that act early—those that strengthen their financial structure, optimize taxes, and plan strategically before December 31.
In this article, JBM Accounting & Advisory Group shares an expert perspective on the Economic Outlook for 2026 and actionable steps every Puerto Rican business should take before year-end to ensure a strong start to the new fiscal cycle.
1. Economic Outlook 2026: Stability Returns After Years of Volatility
Puerto Rico’s economy is showing signs of stabilization. Several structural reforms and private investment initiatives are reshaping the island’s business environment:
- Interest rates are beginning to stabilize, signaling relief for businesses seeking financing or refinancing.
- Consumer confidence is slowly improving thanks to consistent employment growth and tourism recovery.
- Federal recovery funds continue to stimulate local infrastructure, manufacturing, and construction sectors.
For business owners, this means a more predictable environment to plan long-term investments, but it also calls for rigorous financial oversight to avoid overleveraging during the rebound.
2. New Opportunities Through Stable Interest Rates
For much of 2023–2024, high interest rates made borrowing expensive, forcing many local businesses to postpone expansion. As 2025 ends, lenders are signaling rate cuts and improved loan terms for creditworthy companies.
This presents an opportunity to:
- Refinance existing debt to lower costs.
- Secure financing for equipment or property investments before rates fluctuate again.
- Strengthen working capital to navigate inflationary pressures.
Pro tip: Review your financial ratios and cash flow projections. Lenders will prioritize companies with clean, transparent accounting records and strong liquidity management.
3. Energy Transition: Operational Savings Through Renewable Energy
While Puerto Rico’s electrical infrastructure continues to face challenges, businesses that invest in renewable energy solutions are already experiencing significant operational benefits:
- Lower energy costs through solar panel installations and battery storage systems.
- Reduced dependence on unreliable grid infrastructure.
- Access to federal and local tax credits for renewable energy investments.
Companies investing in solar infrastructure, wind energy, or other green alternatives can qualify for additional federal and local tax incentives, creating a double advantage: sustainability and substantial cost savings.
Action step: Consult with an energy efficiency specialist to evaluate renewable energy options for your operations and determine eligibility for available tax credits.
4. Upcoming Changes in Ley 60 and Municipal Contributions
In 2026, the Puerto Rico Department of Treasury (Hacienda) is expected to implement adjustments to Ley 60 (Incentives Code) and municipal tax frameworks.
These potential changes could affect:
- Tax exemptions for export services and resident investors.
- Municipal patent rates depending on gross revenue levels.
- Filing obligations and compliance deadlines.
For companies operating under existing decrees, it’s essential to review your compliance reports and confirm renewal status before December 31 to avoid penalties or loss of benefits.
Action step: Schedule a consultation with your tax advisor to determine how these changes may impact your effective tax rate.
5. U.S. GAAP Compliance: Maintaining Reporting Standards
Puerto Rico businesses must maintain compliance with U.S. Generally Accepted Accounting Principles (GAAP) for financial reporting. As regulatory scrutiny increases, companies need to ensure their accounting systems and internal controls meet these standards.
Key considerations include:
- Proper revenue recognition under ASC 606
- Accurate lease accounting under ASC 842
- Appropriate financial statement presentation and disclosure
- Adequate documentation for audit requirements
Companies with annual revenues exceeding $3 million must include audited financial statements with their corporate tax returns, while those exceeding $10 million require full audited financials of Puerto Rico operations.
Action step: Work with your accounting team to review current policies and ensure full GAAP compliance before year-end audit preparation begins.
6. Year-End Actions to Strengthen Your 2026 Financial Position
Before December 31, Puerto Rico business owners should take the following steps to ensure stability and compliance entering 2026:
Evaluate your corporate structure
Ensure alignment with upcoming tax and reporting standards.
Review your cash flow and working capital
Prioritize debt repayment and liquidity buffers.
Update your accounting policies
Ensure U.S. GAAP compliance and prepare documentation for audits.
Forecast your 2026 budget
Factor in potential cost reductions from renewable energy investments and lower financing rates.
Meet with your tax advisor before year-end
Identify deductions, credits, and optimization strategies.
7. How JBM Accounting & Advisory Group Can Help
At JBM Accounting & Advisory Group, we help Puerto Rican businesses prepare strategically for the coming fiscal year through:
- Comprehensive financial reviews and forecasts.
- CFO and Controller services for planning, reporting, and compliance.
- Tax strategy optimization under Puerto Rico and U.S. regulations.
- U.S. GAAP implementation and compliance guidance.
Our team ensures your company enters 2026 with control, transparency, and a solid plan for growth.
Conclusion: Plan Today for a Strong 2026
Puerto Rico’s economic outlook for 2026 offers cautious optimism—but only for those prepared to act now.
As interest rates ease, renewable energy becomes more accessible, and regulatory changes take shape, businesses that plan ahead will lead the recovery.
Before the year ends, take the time to evaluate your structure, improve your reporting, and strengthen your financial foundation.
The future of your business depends not just on external trends, but on the decisions you make before December 31.
