Investors, business owners, nonprofit leaders and community stakeholders filled the Crofoot Ballroom in downtown Pontiac the morning of Wednesday, March 20 to hear about the Opportunity Zone tax incentive.
Originating from the Tax Cuts and Jobs Act of 2017, Opportunity Zones are meant to encourage investments into economically disadvantaged areas by offering capital gains tax relief. “This is one of the biggest opportunities for development in downtown Pontiac,” Andy Meisner, Oakland County Treasurer said.
The downtown area is one of five Opportunity Zones in Pontiac out of 15 total in Oakland County. If a developer invests $100,000 into a new project, after the fifth and seventh years of the investment, they’d see a deduction on capital gains tax by 15 percent.
The Opportunity Zone tax incentive will be up for reconsideration in 2029, they said. Questions such as what kind of substantial improvement needs to be seen on a property and what kind of actions could lead to an Opportunity Zone being decertified are still circling in development and investment groups.