Tuesday | March 27, 2018

WTAS: ‘Opportunity Zones’ Nominated in States Across the Country

U.S. Senator Tim Scott’s (R-SC) Investing in Opportunity Act (IIOA), included in the 2017 Tax Cuts and Jobs Act, celebrated a big milestone last Friday, which marked the first deadline for the designation of ‘Opportunity Zones.’ Several governors across the country unveiled their nominated areas. 

SOUTH CAROLINA… 

The Post & Courier:  ‘A bright idea for spurring investment in economically distressed areas, approved as part of the federal tax reform bill, has the potential to pump much-needed capital into some of the poorest communities in South Carolina and across the nation.  

 With a little economic alchemy, Sen. Tim Scott, R-S.C., hopes to transform the problems of the rich into opportunities for the poor. Under his Investing in Opportunity Act, individuals and businesses can defer or reduce capital gains taxes by reinvesting their profits in Opportunity Funds.’

['Opportunity zones' could transform S.C.'s poorest communities', The Post & Courier, 3/24/18]


The Sun News
‘A new federal program is set to help low-income areas along the Grand Strand. The program, known as opportunity zones, provides tax incentives to encourage long-term private investments.  

 “The fact that we are given this opportunity to make this available for investors to partner with us is huge and it really helps the city take all of the planning and the vision that we've been working on for the Superblock area and the other areas of the city where we do want to clean up, improve, to attract businesses who want to invest here, this gives us an avenue to do that,” Myrtle Beach Mayor Brenda Bethune said.  

 When asked what the program means for the Superblock, Bethune responded: “It takes it from being a vision and a dream to a reality. Myrtle Beach is growing and this is the outlet that is going to help us get there,” she said.  

 “We are very excited to see this program unveiled," said Brad Dean, president and CEO of the Myrtle Beach Area Chamber of Commerce. "This is a game changer for economic and community development in Horry County, including downtown Myrtle Beach.”’

['This is a game changer: New federal program to help redevelopment along Grand Strand', The Sun News, 3/23/18] 


AROUND THE COUNTRY…

 Trenton, NJ: ‘President Donald Trump’s signature tax reform law could promote urban revitalization in the most distressed parts of Trenton and Hamilton Township. That’s because the Tax Cuts and Jobs Act established so-called Opportunity Zones to spur private investment in struggling communities like Hamilton’s Bromley neighborhood. New Jersey Gov. Phil Murphy’s administration has taken advantage of the program by designating the capital city, neighboring Hamilton Township and other blighted enclaves as Opportunity Zones. 

 “New Jersey is committed to using every tool at our disposal to develop our communities and grow our economy,” Murphy said Thursday in a press statement. “This program provides real opportunity for our state that has the potential to create significant, long-term economic development in the communities that need it the most…I am thrilled the governor accepted our recommendation to include the Bromley area of Hamilton as an Opportunity Zone,” Martin said Thursday in a statement. “This designation, if accepted by the federal government, will encourage an increase in private investment monies into the area. This would not only increase our town ratable base but also redevelop neglected parcels of land.” 

 New Jersey’s Democratic U.S. Sen. Cory Booker and Republican U.S. Sen. Tim Scott of South Carolina sponsored the Opportunity Zones program. Both of them are African-American lawmakers who represent a large number of residents who live in distressed communities.’ 

[‘President Trump tax law provision could uplift Trenton and Hamilton Township’, The Trentonian, 3/22/18]|


Denver, CO:
'Colorado Gov. John Hickenlooper said he hopes to revitalize economically distressed areas with some federal tax incentives created under recent legislation. He, along with the Colorado Office of Economic Development and International Trade (OEDIT), announced Friday they have nominated 126 "Opportunity Zones" across the state, a majority located outside the Front Range. 

 The 2017 Tax Cuts and Jobs Act created a new provision that provides businesses and investors to defer capital gains, which could result in a long-term subsidy for economic development. Under the provision, states were able to nominate 25 percent of eligible census tracts. 

 “Our goal is to support sustainable growth and quality jobs for all Coloradans,” Hickenlooper said. “Opportunity Zones will help us attract investment in businesses, workforce, housing and infrastructure where it is needed most…By engaging Colorado communities and potential investors, we've identified Opportunity Zones that complement  local efforts to create economic momentum in areas where growth has been slow,” said OEDIT Executive Director Stephanie Copeland. “Our holistic approach ensures we've selected zones where this incentive can be catalytic for investment.”’ 

[‘Colorado identifies 126 'Opportunity Zones' eligible for federal tax incentives’, The Denver Business Journal, 3/23/18] 


San Antonio, TX:
‘More than 600 communities in Texas could receive billions of dollars worth of new investment under a provision of President Donald Trump’s $1.5 trillion tax overhaul. Gov. Greg Abbott has nominated 628 census tracts in 145 Texas counties as potential “opportunity zones” under the tax bill — areas that reduce and perhaps eliminate capital gains taxes for developers and businesses in exchange for long-term investments in poor neighborhoods. 

 “This program will help highlight areas of Texas that are prime for business investment, and it will serve to bring more opportunities to hardworking families across the entire state,” Texas Governor Greg Abbott said in a statement. “As we continue to recover after Harvey, these Opportunity Zone designations will also provide a much needed boost for local communities impacted by the storm. With the potential for billions in new investment, I look forward to our state continuing to flourish, bringing further growth and opportunity to the people of Texas.”’ 

[‘More than 600 Texas communities could see new investment under Trump tax breaks’, The San Antonio Express-News, 3/22/18] 

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