Fred Upton #WearYourMaskVerified account

Opportunity Zones are economically distressed rural & urban areas eligible for tax benefits aimed at spurring private investment, econ growth, & local jobs. The goal is to bring long-term, private-sector investment to the places & people who need it most.

For many years the tax code has provided various tax incentives to encourage economic development in low-income communities. In my neck of the woods down in #MI06, local development groups have a strong track record of leveraging these programs to benefit our communities.

Despite these efforts, communities in Michigan & across the country still lag behind in business & job growth. It’s time for new innovative approaches to bring investment to these areas. That’s where Opportunity Zones come in.

Here’s how it works: Governors identify a limited number of Opportunity Zones in areas most in need. States are required to consider local economic development initiatives & successes with other programs to ensure Opportunity Zone designations equal LOCAL results.

Next, tax benefits are offered for reinvesting prior gains into Qualified Opportunity Funds. These funds must hold at least 90% of their assets into Opportunity Zone properties – everything from a local startup to an affordable housing project.

In good news, The U.S. Treasury & IRS recently approved the state of Michigan’s application for Opportunity Zones. Michigan was one of only 18 states approved. This first set includes cities and townships throughout Michigan — 24 designations in #MI06 alone.