Connecticut's Opportunity Zones
Posted on by Bob Santy
Hello and welcome to the August edition of the CERC e-newsletter.
This month I want to talk about Opportunity Zones. Opportunity Zones are included in the new federal tax legislation and its a new tool for economic developers to bring investment into your communities. You have to be a designated opportunity zone and there are 27 communities in Connecticut that have 72 opportunity zones.
The great thing about this is its a great way of bringing capital in these neighborhoods in our communities. It actually allows an investor to defer tax on capital gains if you invest them in a qualified opportunity fund. And these fund will be created all across the country.
The question is, “How do we match the investment that will be coming forward with the opportunity zones in Connecticut?” There are going to be 8,700 opportunity zones across the country so the competition for this investment is going to be pretty strong. So of course, what we want to do is help communities understand how to position their opportunity zones to attract that investment.
It’s really important that you put your best foot forward as a community. You probably need marketing materials, almost like an investment prospectus. Why should you invest in this community here in Connecticut rather than in the other communities across the country.
Governor Malloy’s office released information about the Opportunity Zone Program, including an interactive map of the 27 Connecticut Opportunity Zones as approved by the U.S. Department of the Treasury. And we’re building a program here at CERC to help communities make sure that their investment opportunities stand out. That they are ready to go - shovel ready - they have the approvals that are necessary that will make it easier to attract this new source of investment.
Take a look at the Governor’s announcement and stay tuned for more information from CERC about preparing your community for Opportunity Zone investments…