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Published, Version of Record (VoR)Open Access (License Unspecified), Open Access
Published, Version of Record (VoR)Open Access (License Unspecified), Open
Report
From Transactions to Transformation: How Cities Can Maximize Opportunity Zones
25 Nov 2018
DOI:
https://doi.org/10.17918/00010540
Abstract
The Tax Cuts and Jobs Act of 2017 provides a new tax incentive – centered around the deferral, reduction, and elimination of capital gains taxes – to spur private investments in low-income areas designated by states as Opportunity Zones. This provision is based on the bipartisan Investing in Opportunity Act (S. 1639) introduced by Senator Cory Booker (D-NJ) and Senator Tim Scott (R-SC). Given the significant interest among investors, it is possible that this new incentive could attract hundreds of billions of dollars in private capital, making it one of the largest economic development initiatives in U.S. history.
The broad objective of this incentive – expanding economic opportunities for places and people left behind -- cannot be achieved by the market and outside investors alone. Cities in the broadest sense – local governments, urban institutions, networks, and civic leaders -- will need to act decisively if Opportunity Zones are to engender not only a large volume of individual transactions but broader growth that is inclusive, sustainable and truly transformative for each city’s economy. The promise of Opportunity Zones is not just to match private capital to investable projects but to inspire cities to reexamine and rediscover the fundamentals of economic development for all by channeling the resources of their own communities. Cities who are able to coordinate and focus investment will drive not just growth in the near term but institutional and financial reforms that will reposition cities for success over the long haul.
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Details
- Title
- From Transactions to Transformation: How Cities Can Maximize Opportunity Zones
- Creators
- Bruce J Katz - Drexel University, Nowak Metro Finance LabEvan Weiss - New Jersey Economic Development Authority
- Publisher
- Nowak Metro Finance Lab, Drexel University; Philadelphia, PA
- Number of pages
- 39
- Resource Type
- Report
- Language
- English
- Academic Unit
- Nowak Metro Finance Lab; Lindy Institute for Urban Innovation
- Other Identifier
- 991021902029304721