Companies and Funds are Targeting Rural Communities. Is Your Community Ready?
30 Oct 2019
Economic Development News, Found Article
The 2017 Tax Cuts and Jobs Act is designed to bring investment to distressed neighborhoods. By creating Qualified Opportunity Zones (QOZ) communities can offer investment vehicles for people seeing tax incentives.
Investors who invest in an opportunity zone can defer capital gains on sold assets until December 31, 2026 or until they decide to sell the asset. Additionally, any gains from the investment may be realized tax-free. This can be a powerful incentive to drive investment into distressed areas.
Opportunity zones have gained widespread attention and communities are starting to create marketing materials and strategies to attract investors and developers.
According to "Investing in Rural Opportunity Zones", by Amanda Sapio opportunity zones have the potential to offer various incentives:
"There are thousands of neighborhoods in need of renewal, and investing in rural opportunity zones is an attractive, tax-effective option for investors. Some rural opportunity funds, such as those based out of Kansas, not only offer significant tax incentives, but various other financial incentives as well, such as student loan repayment and income tax waivers."