50 Per Cent Transfer Tax Break for Hurricane-Hit Parishes

For the next two years, transfer tax on properties in the four parishes hardest hit by Hurricane Melissa will be reduced by 50 per cent to support redevelopment and relocation efforts.

The affected parishes are Trelawny, Hanover, Westmoreland, and St. Elizabeth.

This was disclosed by Prime Minister, Dr. the Most Hon. Andrew Holness, during his contribution to the 2026/27 Budget Debate in the House of Representatives on Thursday (March 19).

“The purpose of this [incentive] is that, these parishes is where we will have the most need for relocation [for] which we will need to be able to sell and dispose of property. Many persons want to come out of certain areas, and if we can incentivise this process, it would be in the interest of the restoration and recovery effort. Therefore, we have taken that decision now to give a special transfer tax break in these areas,” he outlined.

Dr. Holness further advised that work is well advanced on developing a new framework for urban renewal and investment in blighted urban spaces.

This initiative is being led by the Urban Development Corporation (UDC), in collaboration with key stakeholders.

“Some technical and legislative work remains but we are targeting the first quarter of fiscal year 2026/27 for the new Urban Renewal Framework to begin to come into effect,” the Prime Minister said.

He pointed out that the new framework will strengthen the core incentive by enabling developers to apply the existing tax credit against up to 100 per cent of their income tax liability, compared to the current 50 per cent limit, describing it as a “major change”.

Dr. Holness explained that for priority projects, including developments in severely blighted areas, affordable housing and critical public facilities, the credit will rise from the current 33.3 per cent to 40 per cent.

He further pointed out that unused tax credits will become fully transferable, allowing them to move with the property upon sale.

The Prime Minister added that this represents a significant change, removing a major barrier to investment and reinforcing the develop and reinvestment model.

Dr. Holness noted that the framework will also bolster the wider development ecosystem.

“Financing for approved projects will receive tax-exempt interest income for up to eight years, commercial tenants will be able to deduct 200 per cent of rent, and first purchasers of homes in approved developments will receive a property tax exemption in their first year. We are looking at a whole suite of incentives to attract investment into urban blighted communities,” the Prime Minister said.

Additionally, he announced that all permits, development approvals, and tax authorisations will be processed through a single digital portal managed by the UDC, noting that this will dramatically reduce processing time.

Prime Minister Holness announced that the programme will expand beyond downtown Kingston to include sections of Central Kingston, Vineyard Town, Swallowfield, and Olympic Gardens in the capital; Spanish Town and Caymanas in St. Catherine; Montego Bay in St. James; Port Antonio in Portland; and Morant Bay in St. Thomas.

The new framework will also explicitly incorporate disaster recovery and reconstruction zones, covering sections of Black River, Font Hill, Junction, and Santa Cruz in St. Elizabeth; Whitehouse and Negril in Westmoreland and Hanover; and Falmouth in Trelawny.

Dr. Holness argued that any serious discussion on land use, productivity, and housing must confront one of Jamaica’s most visible shortcomings in land utilization – its blighted urban spaces.

He noted that across parts of downtown Kingston, Spanish Town, and Montego Bay, vacant lots and derelict buildings occupy land that should be among the most economically productive.

“These sites sit close to infrastructure, jobs, and services. The potential is to unlock it,” the Prime Minister said.

He explained that since 1995, the Urban Renewal Tax Relief Act has sought to incentivise investment in these areas.

“However, the results have been limited, with only 56 projects approved over three decades. We will not finance this resurgence through undisciplined borrowing that mortgages the future to pay for the present.

“Every element of the reconstruction and development programme will be financed through a deliberately structured, multi-layered architecture that protects Jamaica’s fiscal stability while mobilising the full range of available resources,” Dr. Holness underscored.

He explained that the financing strategy rests on four distinct pillars: concessional sovereign lending, private sector-mobilisation and public private partnerships (PPPs), climate and resilience financing, and domestic long term capital.

“Together, these pillars form a financing architecture that is prudent, diversified, and equal to the task before us,” Dr. Holness said.