New Legislation to Be Introduced to Expand Redevelopment Zones

New legislation will be introduced by December 2025 to expand redevelopment zones, streamline approvals, and enhance incentives under the urban redevelopment process.

Prime Minister, Dr. the Most Hon. Andrew Holness, made the announcement in his 2025/26 Budget Debate presentation in the House of Representatives on March 20.

“To drive urban renewal, we must modernise the Urban Renewal (Tax Relief) Act, which since 1995 has incentivised investments in regenerating blighted areas,” he said.

Dr. Holness noted while the legislation has supported 56 projects, mostly in downtown Kingston, and several in Spanish Town and Montego Bay, its impact has been limited, noting that of the $25.8 billion in approved incentives, only $8.5 billion has been utilised.

“The programme is set to expire in June 2026, presenting an opportunity for a more comprehensive framework to be developed,” the Prime Minister said.

He pointed out that a phased approach will be adopted, with certain areas being designated initially. As those are developed, additional areas will be designated.

In the first phase, designated areas will include downtown Kingston, Central Kingston, Vineyard Town, Swallowfield, Olympic Gardens, Spanish Town Road, Caymanas, Montego Bay, Port Antonio, Lucea, Negril, and Morant Bay.

The Prime Minister said these areas will be formally reclassified as Urban Development Corporation (UDC) Designated areas, allowing the UDC to spearhead development as it successfully did in Negril and Ocho Rios.

Additionally, the cumbersome approval process that currently takes up to three years will be replaced by a single approval portal under the UDC, drastically reducing delays and making investment more attractive.

To further incentivise development, Dr. Holness said tax credits will become transferable.

“This means that unused tax credits associated with a particular property can be transferred upon sale to the new owner, enabling greater flexibility in structuring transactions, so that incentives can be fully utilised. With these reforms, this Government is laying the foundation for a new era of urban transformation,” the Prime Minister said.