In 2017, the United States Congress passed the Tax Cuts and Jobs Act, the most consequential piece of tax legislation in 30 years. In addition to its income tax deductions, the law created something called Opportunity Zones — low income areas certified by the U.S. Treasury where real estate investors can place their capital at a tax advantage.
There are more than 8,700 Opportunity Zones in the U.S. today, offering investors a chance to defer and lower taxes on capital gains. And they offer a unique opportunity for cities and counties that wish to see increased investment and development in blighted neighborhoods.
To help cities get a handle on this issue, the National League of Cities has published a guide called “Opportunity Zones: What Cities Should Know.” The report discusses the program’s basics and eligibility requirements, as well as how city leaders can take advantage of the program to ensure it benefits current and/or vulnerable residents.
Some of the recommendations include:
-Designating a point person to monitor the program on both a local and national scale
-Keeping community groups and investors informed about the program and how it works
-Supporting best practices through local zoning powers
-Creating document templates and other tools to simplify opportunity zone investment and transactions
-Creating an Opportunity Zone Coalition of stakeholders
Download the guide from the NLC here.