Opportunity Zone News
Governmental units that have one or more Opportunity Zones located in their jurisdiction should consider what role they can play in attracting a portion of the predicted $100 billion of investments resulting from the new tax law. Read on...
The U.S. Department of Treasury has officially certified Governor Jeff Colyer’s nomination of 74 census tracts to be designated as Qualified Opportunity Zones and has designated those tracts as such. Read on...
Kansas Governor Jeff Colyer, M.D. and officials from state government agencies have completed a review of Letters of Interest submitted from communities across the state to be considered for designation as Opportunity Zones. Read on...
Forum to discuss Opportunity Zones in Kansas held in Mulvane, KS Read on...
In February, the Kansas Department of Commerce announced it would begin accepting Letters of Interest from communities to have their eligible low-income census tracts designated as Opportunity Zones. Following the review of submissions, Gov. Colyer determined that each community who submitted an eligible census tract would be nominated for at least one Opportunity Zone designation.
Opportunity Zones are an economic development tool enacted by the Tax Cuts and Jobs Act of 2017 designed to encourage long-term investments in low-income urban and rural communities.
This provides incentives to investors to move capital off the sidelines and into projects which will stimulate the Kansas economy.
This program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing in economically distressed areas designated as Opportunity Zones by the Governor.
The program provides deferral and reduction of capital gains taxes when the gain is invested in a Qualified Opportunity Fund and maintained for at least 5 years. Additional tax incentives are available for investments held for periods of seven years and 10 years.
Based upon the number of low-income communities identified by the Federal Census, the Governor can designate 74 census tracts in Kansas communities as Opportunity Zones. Census tract eligibility is based upon population and income.
Eligible low-income communities are defined as:
- Tracts in which the poverty rate is at least 20 percent, or
- Tracts in which the median family income does not exceed 80 percent of the statewide median family income if located outside of a metropolitan area, or
- Tracts in which the median family income does not exceed 80 percent of the statewide median family income or the metropolitan area median family income, whichever is higher.
In addition to the federal eligibility criteria, the State considered several other factors in determining which census tracts to designate as Opportunity Zones.
These factors included an indication of community interest and support for additional investment, the potential of at least one “ready to go” or otherwise identifiable project, and that the identified project addressed one of the following target uses: industrial/business development, housing, or agriculture.
Other links of interest: