There is an innovative new economic development tool that encourages investments in underserved areas of the community designated as Opportunity Zones. The obvious benefit for investors is tax breaks. The bigger benefit – and exciting potential – is fostering private and philanthropic investment to create positive change and economic opportunity in our city.
Opportunity Zones are part of the 2017 Federal Tax Cuts and Jobs Act. By taking capital gains from current holdings and reinvesting in projects located within designated Opportunity Zones, investors can defer or reduce capital gains taxes. If held for a decade, the added profit made from the Opportunity Zone investment will not be taxed at all. The Opportunity Zone incentives have no benefit cap and can be applied to a wide range of investments in real estate and operating companies. The incentives can be used in tandem with other state and federal programs, furthering our city’s redevelopment efforts.
Oklahoma City has even more reason to be excited about Opportunity Zone incentives. Oklahoma City Mayor David Holt is one of a few leaders selected nationally by Accelerator for America to help lead a pilot program that capitalizes on the tax incentive. He, along with mayors from Los Angeles, Louisville and South Bend, have been working with urban experts Bruce Katz and the late Jeremy Nowak to create an investor prospectus for Oklahoma City that will define opportunities to attract investors from around the nation.
Read the full article at The Journal Record