Opportunity Zones could offer tax benefits across Central Mass.
By
Cyrus Moulton
Telegram & Gazette Staff
Posted Apr 20, 2018 at 8:14 PM
Updated Apr 21, 2018 at 5:36 AM
Twenty-five census tracts in a dozen area communities from Athol to
Worcester have been submitted to the U.S. Treasury to be designated as
Opportunity Zones where investors can gain tax benefits for investing in
the areas.
“The Opportunity Zone program helps leverage private investment in Massachusetts cities and towns and can be a catalyst for job creation and economic activity,” said Gov. Charlie Baker in a news release. “I look forward to working with our congressional delegation and local officials to support these new economic development opportunities across the Commonwealth.”
The Opportunity Zone program was created as part of the federal Tax Cuts and Jobs Act of 2017, and provides a federal tax incentive for taxpayers who reinvest unrealized capital gains into Opportunity Funds - specialized vehicles dedicated to investing in low-income areas called Opportunity Zones. The zones themselves are to be comprised of low-income community census tracts and designated by governors in each state.
Of Massachusetts’ 1,478 census tracts, 581 tracts were determined by the U.S. Department of Treasury to be eligible to be considered as Opportunity Zones. Mr. Baker recommended 138 Opportunity Zones, the maximum number for Massachusetts, according to the release.
According to the state these include: two zones each in the communities of Athol, Clinton, Fitchburg, Gardner, Leominster, Marlborough, Orange, and Southbridge; a single zone in Spencer, Ware, and in Webster; and six zones in Worcester.
Applicant municipalities explained why their nominated tracts offer attractive investment opportunities, what level of planning they had already completed, and key demographic data such as median family income, unemployment, and poverty rates - both in the nominated tract and in the wider community.
City of Worcester Chief Development Officer Michael E. Traynor said he has had multiple inquiries asking if Worcester was submitting census tracts for designation. The city submitted six census tracts for consideration ranging from the tract containing the Wyman Gordon site to the tract containing the Greendale Mall.
“The interest is real,” Mr. Traynor said in a statement. “We have a considerable amount of investment in economic development projects in the city but the Opportunity Zones can leverage even more ... While we have a great story to tell about the development that is ongoing in Worcester, every incentive helps.”
Central Massachusetts Regional Planning Commission Executive Director
Janet Pierce said she thought the designation - if it comes - could
“benefit tremendously” those communities that have been nominated.
“I think this would certainly be an incentive, and am glad they are targeting those areas,” Ms. Pierce said, noting that the designations last for 10 years. “Those areas are in need of investment and this could turn those areas around.”
The U.S. Treasury has said it will respond to the state submissions within 30 days.
“The Opportunity Zone program helps leverage private investment in Massachusetts cities and towns and can be a catalyst for job creation and economic activity,” said Gov. Charlie Baker in a news release. “I look forward to working with our congressional delegation and local officials to support these new economic development opportunities across the Commonwealth.”
The Opportunity Zone program was created as part of the federal Tax Cuts and Jobs Act of 2017, and provides a federal tax incentive for taxpayers who reinvest unrealized capital gains into Opportunity Funds - specialized vehicles dedicated to investing in low-income areas called Opportunity Zones. The zones themselves are to be comprised of low-income community census tracts and designated by governors in each state.
Of Massachusetts’ 1,478 census tracts, 581 tracts were determined by the U.S. Department of Treasury to be eligible to be considered as Opportunity Zones. Mr. Baker recommended 138 Opportunity Zones, the maximum number for Massachusetts, according to the release.
According to the state these include: two zones each in the communities of Athol, Clinton, Fitchburg, Gardner, Leominster, Marlborough, Orange, and Southbridge; a single zone in Spencer, Ware, and in Webster; and six zones in Worcester.
Applicant municipalities explained why their nominated tracts offer attractive investment opportunities, what level of planning they had already completed, and key demographic data such as median family income, unemployment, and poverty rates - both in the nominated tract and in the wider community.
City of Worcester Chief Development Officer Michael E. Traynor said he has had multiple inquiries asking if Worcester was submitting census tracts for designation. The city submitted six census tracts for consideration ranging from the tract containing the Wyman Gordon site to the tract containing the Greendale Mall.
“The interest is real,” Mr. Traynor said in a statement. “We have a considerable amount of investment in economic development projects in the city but the Opportunity Zones can leverage even more ... While we have a great story to tell about the development that is ongoing in Worcester, every incentive helps.”
“I think this would certainly be an incentive, and am glad they are targeting those areas,” Ms. Pierce said, noting that the designations last for 10 years. “Those areas are in need of investment and this could turn those areas around.”
The U.S. Treasury has said it will respond to the state submissions within 30 days.
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