Governor Dannel P. Malloy announced that the State of Connecticut has begun an application process for towns and cities that are interested in participating in the federal government’s recently established Opportunity Zone program.
A new community development program, Opportunity Zones are a creation of the Tax Cuts and Jobs Act of 2017 to induce long-term investments in low-income communities. It provides a federal tax incentive for investors to re-invest unrealized capital gains into Opportunity Zones through Opportunity Funds.
Under the terms of the program, the governor of each state must submit a plan to the federal government designating up to 25 percent of the qualified census tracts in their state as Opportunity Zones, which is then subject to approval of the Secretary of the Treasury.
“We are encouraging interested towns and cities throughout the state to utilize this application process as an opportunity to create growth in low income areas,” said Governor Malloy.
“We believe this new tool will help engage a new set of investors in some of the communities in the state that need capital infusions the most,” said Catherine Smith, Commissioner of the Department of Economic and Community Development (DECD), the state agency that is overseeing the application process.
“Once the Governor’s submission is approved, we look forward to engaging with private investors to find creative and constructive development opportunities.”
Qualified census tracts are those that have a poverty rate of at least 20 percent of a median income that does not exceed 80 percent of the area median income. The Opportunity Fund model encourages investors to pool their resources in Opportunity Zones, increasing the scale of investments going to underserved areas.
These funds may seed new businesses, expand existing firms, or undertake real estate development.
Qualifying investments may include a broad range of commercial and residential investments, such as transit-oriented development, affordable housing and mixed use development, and energy efficiency and renewable energy projects on public and private assets. In exchange for their investments, Opportunity Fund investors are able to decrease their federal tax burden through the preferential treatment of capital gains.
The Office of the Governor is contacting each municipality in the state with information on how to apply for consideration. Towns and cities must return a completed application to DECD no later than March 16, 2018.
Latest Stories From Roundup Partner : FOX 61
NEW HAVEN — In the course of 24 hours, New Haven first responders reported nearly 76 overdoses on synthetic marijuana known as ‘spice’ or ‘K2’. So what is synthetic marijuana? It’s been in the news for the past few years. The CDC says that synthetic cannabinoids (cannabis, marijuana) aren’t just one drug specifically. They say hundreds of different synthetic cannabinoid chemicals are made and sold with new ones with unknown health risks becoming available each year. The say that synthetic […]
WALLINGFORD — State Police say that 56-year-old Sharon Ryan of Meriden was killed after she tried crossing three lanes on I-91 in Wallingford Wednesday night. Police say that a car was driving in the center of the three lanes on I-91 northbound near the exit 13 off ramp. Sharon Ryan was trying to cross all the lanes from the right shoulder to the left median. The car then hit Ryan, causing life-threatening injuries. Ryan was rushed to Yale-New Haven hospital […]
NEW HAVEN — New Haven police are investigating a two car crash that happened overnight. The crash happened just after 1:30 a.m. on the corner of Libery Street and Spring Street. Two people were injuried with one of them listed in ‘very serious’ condition. Other injuries are unknown at this time. This is a developing story.
Summer heat continues today with highs in the lower 90s. The humidity will push the heat index into the mid 90s with bright sunshine. The Stormtracker 61 Factor is low for any storms today! Friday will be very warm and humid too. Most of the day will be dry but a cold front will trigger a few showers and storms late-day and at night. Some of the rain could be locally heavy with the chance for a few strong storms as […]