*photo provided by Binghamton University The Opportunity Zones - - PowerPoint PPT Presentation

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Oct 27, 2023 244 likes •372 views

*photo provided by Binghamton University The Opportunity Zones incentive is a new community investment tool established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural

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*photo provided by Binghamton University

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✓The Opportunity Zones incentive is a new community investment tool established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. ✓Opportunity Zones provide a tax incentive for investors to re-invest their unrealized capital gains into dedicated Opportunity Funds. ✓An Opportunity Zone is a low income census (LIC) tract with an individual poverty rate of at least 20% and median family income no greater than 80% of the area median.

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The Opportunity Zones program offers three tax incentives for investing in low-income communities through a qualified Opportunity Fund.

*Courtesy of Economic Innovation Group

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The Tax Cuts and Jobs Act of 2017 established new Internal Revenue Code 1400Z - Opportunity Zones

There are 4 parties in an Opportunity Zone transaction:

Qualified Zone Projects (Property & Business) Opportunity Fund Taxpayer

Different Than Other Tax Credits:

✓ More market-oriented ✓ Residential, commercial real estate, and business investments ✓ No benefit cap

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✓ Opportunity Funds must be classified as a corporation or partnership for income tax purposes, meaning a limited liability company (LLC) can qualify. Opportunity Funds must also be created or organized in one of the 50 U.S. states, DC, or a U.S. territory. ✓ Pre-existing entities can qualify as Opportunity Funds or Opportunity Zone businesses, as long as they satisfy the necessary requirements. ✓ Opportunity Funds will be able to choose the first month in which they are treated as an Opportunity Fund. The last day of the fund’s taxable year is a test date for the 90-percent asset test. ✓ An Opportunity Fund must value its assets for purposes of the 90-percent asset test using values reported on the fund’s audited or filed financial statements (or using the cost of the assets, if it does not have them). ✓ Though Opportunity Zone designations expire at the end of 2028, taxpayers may continue to hold Opportunity Fund interests invested in those zones and still may step up the basis of their Opportunity Fund investments to fair market value if they hold the investments for ten years.

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ENDICOTT

Areas Poverty Status (% in 2017) Labor statistics (% unemployed in 2017) Median Household Income (2017) Educational Attainment (% who

btain

College in 2017) Census Tract 134 12.9% 14.6% $36,192 55% Broome County 17.1% 4.2% $49,064 40.6% U.S. 14.6% 4.1% $57,652 39.2%

✓ Highest population density of all six OZ tracts ✓ Nearby attractions: Little Italy Commercial District, North Side Park

*Map picture provided by Census Reporter

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ENDICOTT

Areas Poverty Status (% in 2017) Labor statistics (% unemployed in 2017) Median Household Income (2017) Educational Attainment (% who

btain

College in 2017) Census Tract 135 34.8% 5.1% $21.333 12.4% Broome County 17.1% 4.2% $49,064 40.6% U.S. 14.6% 4.1% $57,652 39.2%

✓ Includes Huron Campus and BAE Systems ✓ Included in the Endicott iDistrict ✓ Nearby attractions: Washington Ave. Commercial District, North Brewery

*Map picture provided by Census Reporter

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JOHNSON CITY

Areas Poverty Status (% in 2017) Labor statistics (% unemployed in 2017) Median Household Income (2017) Educational Attainment (% who

btain

College in 2017) Census Tract 139 30.3% 5.1% $32,470 27.6% Broome County 17.1% 4.2% $49,064 40.6% U.S. 14.6% 4.1% $57,652 39.2%

✓ This tract is identified as the Johnson City iDistrict and JC Health & Cultural District ✓ Anchor Institutions: UHS/Wilson Hospital; Binghamton University School

f Pharmacy

*Map picture provided by Census Reporter

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BINGHAMTON

Areas Poverty Status (% in 2017) Labor statistics (% unemployed in 2017) Median Household Income (2017) Educational Attainment (% who

btain

College in 2017) Census Tract 2 31.8% 11.2% $25,425 17.9% Broome County 17.1% 4.2% $49,064 40.6% U.S. 14.6% 4.1% $57,652 39.2%

✓ Part of the First Ward BOA, includes Charles Street Business Park ✓ Nearby attraction: Antique Row, Boys & Girls Club

*Map picture provided by Census Reporter

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BINGHAMTON

Areas Poverty Status (% in 2017) Labor statistics (% unemployed in 2017) Median Household Income (2017) Educational Attainment (% who

btain

College in 2017) Census Tract 4 31.3% 8.8% $25,00 16.5% Broome County 17.1% 4.2% $49,064 40.6% U.S. 14.6% 4.1% $57,652 39.2%

✓ River frontage along Chenango River ✓ Nearby attractions: Otsiningo Park, Downtown Binghamton ✓ Part of the Brandywine BOA, includes Stow Manufacturing

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BINGHAMTON

Areas Poverty Status (% in 2017) Labor statistics (% unemployed in 2017) Median Household Income (2017) Educational Attainment (% who

btain

College in 2017) Census Tract 5 53.8% 9.9% $20,052 42.4% Broome County 17.1% 4.2% $49,064 40.6% U.S. 14.6% 4.1% $57,652 39.2%

✓ River frontage along Chenango River ✓ Nearby attractions: Otsiningo Park, Downtown Binghamton ✓ Part of the Brandywine BOA, includes Stow Manufacturing

*Map picture provided by Census Reporter