President Donald Trump’s Tax Cuts and Jobs Act of 2017 has a provision creating Opportunity Zones that allows for tax incentives to investors willing to pour money in distressed communities to spur economic development.
It seems like all I hear these days from the real estate community is about Opportunity Zones.
Last week, North Carolina Football Club owner Steve Malik and Kane Realty CEO John Kane made a pitch last week in front of Wake County leaders that detailed a 40-acre development plan near downtown Raleigh which includes a soccer stadium. The location falls in an Opportunity Zone. It is easy to figure out, from a development perspective, why a developer would pour money into those areas – knowing some tax savings are on the other side.
In all, there are 8,700 designated opportunity zones in the U.S.
A new study just concluded by CRE research firm Yardi Systems’ CommercialCafe arm concludes Wake County is the fifth-best county in the U.S. for opportunity zone investment. Only Travis County in Texas (Austin); Sacramento, California; District of Columbia; and Clark County, Nevada (Las Vegas) were ranked higher.
Two other N.C. counties were ranked in top 20, with Pitt County (anchored by Greenville) ranked 18th and Mecklenburg County (Charlotte), 20th.
Opportunity zone investment offers our policy makers a chance to make sure economic growth gets distributed across all parts of a region.