Opportunity Zones Bring New Hope for STX Refinery

M.A. Dworkin

USVI - Governor Albert Bryan Jr. acknowledged the signing of the federal tax and spending package, commonly known as the “Big Beautiful Bill” by President Donald Trump by underscoring a key provision within the measure that reopens and expands the federal Opportunity Zone program.    

While the broader legislation has sparked debate nationally and locally, Governor Bryan emphasized that the renewal of Opportunity Zones presents a significant opportunity to accelerate economic development in the Virgin Islands - particularly on St. Croix. 

“This is a major step forward for St. Croix and for our broader economic development goals,” Governor Bryan said. “The reauthorization of the Opportunity Zone program gives us the ability to designate new zones in 2026, and we are moving quickly to ensure that key industrial sites like the Refinery and the Renaissance Campus are prioritized for this incentive,”

Opportunity Zones are federally designated areas that offer tax incentives to investors who make long-term commitments in underserved communities. The goal is to stimulate private investment, create jobs, and foster economic revitalization in areas that need it most. 

Governor Bryan noted that integrating the Refinery and the Renaissance property into new Opportunity Zones would open the door to a powerful set of incentives. Investors will benefit from federal capital gains tax relief, the Virgin Islands Economic Development Commission’s 90 percent tax reduction, and the Territory’s customs exemption under the Free Trade Zone Program.

“Together, these tools make St. Croix one of the most attractive places in the United States for industrial investment,” the Governor stated. “In a global market where costs continue to rise, we’re offering a clear competitive edge to investors willing to commit to the people and future of our Territory.”

The legislation also includes language allowing the Virgin Islands Water and Power  

Authority to sell electricity in designated industrial zones without rate regulation. This provision supports efforts to deliver power at an industrial rate of 12 cents per kilowatt hour - a key step toward positioning St. Croix as a hub for logistics, light manufacturing, and related industries.

“Our vision is to build a stronger, more resilient economy by supporting job creation and long-term investment,” Governor Bryan said. “If we can reach a 12-cent industrial power rate, we can unlock a new era of growth on St. Croix - one that lifts working families and expands our middle class.”

While acknowledging the broader concerns surrounding the bill, Governor Bryan reiterated his commitment to putting the interests of Virgin Islanders first.

“Not every provision in this legislation aligns with our values or priorities, but when opportunities arise that can meaningfully benefit our people, we have a responsibility to act,” the Governor said. “This is not about politics. This is about using every tool available to build a more prosperous future for the Virgin Islands.”

Governor Bryan also thanked the Virgin Islands’ allies in Washington who supported the inclusion of this critical economic development measure.