Tuesday | July 21, 2020

ICYMI: The Washington Examiner: Opportunity abounds when government gets out of the way

WASHINGTON – U.S. Senator Tim Scott’s (R-SC) bipartisan Investing in Opportunity Act was included in the Tax Cuts and Jobs Act as a key provision to help economically distressed communities. By incentivizing investment in economically-distressed areas, it allows trillions of dollars in private capital to be used to encourage small businesses, support entrepreneurs, and develop properties in zip codes that desperately need a resurgence.

The Washington Examiner wrote about how this provision is creating economic opportunity in Eerie, Pennsylvania; you can read the article in its entirety here.

Opportunity abounds when government gets out of the way
The Washington Examiner
Salena Zito

To anyone who has said it would be impossible to transform one of the poorest ZIP codes in the country into a role model for achieving economic prosperity has never listened to Sen. Tim Scott of South Carolina discuss the promise of Opportunity Zones. And they have definitely underestimated the determination of Erie’s local civic, foundation, and business leaders to not give up the ship.

Last month, despite all of the economic obstacles that 2020 has thrown at them, the Boston-based investment firm Arctaris, along with significant investments from Erie Insurance as well as the Erie Community Foundation, committed to making over $40 million worth of Opportunity Zone investments here in this postindustrial city that shares the name of the lake whose shores it borders.

[…]

Opportunity Zones were created under the 2017 Tax Cuts and Jobs Act. They’re designed to attract development to impoverished areas that under normal circumstances would never be able to attract significant investments, Scott explained in an interview with the Washington Examiner.

[…]

Scott said that without the Opportunity Zone, what is happening in Erie would take 30 years. “Now, they say it will take five years."

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