CLINTON — Clinton investors are now able to receive certain tax benefits thanks to areas of the city being designated Opportunity Zones.
Opportunity Zones were introduced to the state of Iowa after passage of the 2017 Tax Cut and Jobs Act which defines the term as an “economically distressed community where new investments, under certain conditions, may be eligible for preferential tax benefits.” Officials have announced that two contiguous portions of Clinton have been designated as Opportunity Zones in which future capital development projects will be eligible for those benefits.
According to the Clinton Regional Development Corporation, localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service.
A map distributed by the Clinton Regional Development Corporation shows the zone’s southern border at 15th Avenue South, its western border at Bluff Boulevard, its northern border at Seventh Avenue North, and its eastern border at the Mississippi River. A small section of blocks near Hy-Vee on South Fourth Street is excluded from the zone.
That means, officials explained, that future capital development projects in that defined area could see federal benefits when it comes to taxation. The federal benefits include a deferral of taxation on the initial investment in a qualifying project to as far as the tax year 2026, a potential tax exclusion of up to 15 percent on the initial investment, and a potential exclusion of up to 100 percent of the future gain in the event of a potential sale of the initial qualified investment.
These projects may be tied to existing businesses or structures, or may be created from scratch.
CRDC Executive Director Erin Cole expressed her excitement Monday regarding the initiative which could bring new development and life to a large part of the city.
“From the CRDC’s and the city’s perspective, this is a major new economic development tool that we have in our region, and we really plan to take advantage of it,” Cole said. “We have that opportunity. In this case, they are in economically depressed areas, but that’s a plus for us. It can be an advantage. We need to move forward and be creative and work together, and figure out how to best use these opportunity zones to our advantage here in our community.”
Originally Published on January 21, 2019 at 10:22PM
Article published originally via “opportunity zone” – Google News https://www.clintonherald.com/news/local_news/some-inventments-in-clinton-qualify-for-preferential-tax-benefits/article_d3f8c628-b84c-5337-8365-7bca283cbe65.html