Governor Jim Justice has announced the Opportunity Zones Program, a new community development program established by Congress as a result of Public Law 115-97, also known as the federal Tax Cuts and Jobs Act of 2017.
The Opportunity Zones Program gives each state’s Governor the authority to designate Opportunity Zones, or areas of populations that are eligible to receive private investments through Opportunity Funds. While the designation does not guarantee private sector investment, it does make it eligible under Federal guidelines. The program is designed to drive long lasting investments into rural and low-income urban communities in every U.S. state and territory.
Opportunity Zones are defined as low-income census tracts where the poverty rate is 20 percent or greater and/or family income is less than 80 percent of the area’s median income. Opportunity Funds are established to attract investors that will drive needed money into distressed communities and spur redevelopment activities. Each state may nominate a minimum of 25 total eligible census tracts but no more than 25% of the total number of eligible census tracts within the state.
Opportunity Funds investors can achieve tax relief on the capital gains generated through those investments for a period of time. Governor Justice has directed the West Virginia Department of Commerce to take all necessary steps to research and recommend which areas may or may not be designated as Opportunity Zones in the State of West Virginia.
Local governments are encouraged to nominate areas for inclusion in the program by submitting a proposal to the West Virginia Department of Commerce. Additional information about the program as well as instructions on how to submit a proposal can be found at http://westvirginia.gov/opportunity-zones.
All proposals should be submitted through the portal by 5 p.m. Wednesday, March 7, 2018.
Questions about the program may be directed to Wesley White at Wesley.H.White@wv.gov.
Nominations must be made by the Governor no later than March 22, 2018. When finalized, the U.S. Department of the Treasury will approve the nominated census tracts and administer the Opportunity Zone Program.
