Legislation recently introduced in the U.S. House of Representatives would require Opportunity Zone report investments to increase transparency and streamline the reporting process.
The 2017 Tax Cuts and Jobs Act established Opportunity Zones as federally recognized, economically distressed communities where new investments can be eligible for preferential capital gains tax treatment.
The Opportunity Zones Transparency, Extension, and Improvement Act also would extend the investment and deferral window to the end of 2028. The goal is to drive more investment into high-impact projects in low-income communities.
“Opportunity Zones have breathed new life into neighborhoods and Main Street businesses that have not seen private investment in years, all without spending a single taxpayer dollar,” said U.S. Rep. Mike Kelly (R-PA), chairman of the Ways and Means Subcommittee on Tax. “This legislation builds upon the successes of Opportunity Zones and now adds new guidelines to make sure this program can benefit more communities for years to come.”
Opportunity Zones have created more than $100 million in new investment in Erie.
“Opportunity Zones are helping to fuel over $400 million of long term capital investment into the revitalization of downtown Erie, Pennsylvania, which is home to one of the poorest zip codes in America,” Drew Whiting, Erie Downtown Development Corp. CEO, said. “Extending and improving the legislation will ensure that Opportunity Zones continue to benefit communities with the greatest economic and social needs.”