Investors, developers and economic-development officials have been eagerly awaiting the potential impact of Opportunity Zone investments.
Now, the state legislature is looking to further leverage and encourage them as well. The Opportunity Zone (OZ) program was created as part of the 2017 federal tax reform law to spur realty- and business-development in the U.S.’ neediest communities.
It allows taxpayers who invest in qualified Opportunity Zones to be eligible for capital gains tax incentives. Besides investors, anticipated beneficiaries are the 72 low-income neighborhoods in 27 municipalities across Connecticut that have been tagged as OZs. That includes zones in Hartford, West Hartford, East Hartford, Bristol, Middletown, Meriden and Manchester.
State lawmakers have proposed Senate Bill 570 in order to further support the federal program. If passed, it would:
- Make OZ projects eligible for expedited permit reviews from the state Department of Economic and Community Development’s (DECD) Office of the Permit Ombudsman.
- Require the DECD commissioner to study the federal opportunity zone program and how the state may further incentivize its use.
- Require the DECD commissioner to collaborate with local, private and civic partners to host at least five regional events advertising the state’s opportunity zones.
The bill received unanimous support in the Commerce Committee and is now awaiting further action in the Senate. Among its proponents is State Sen. James Maroney (D-Milford) who said other states, including Maryland and Kentucky, have passed laws to further leverage  OZs.
He wants Connecticut to do the same.
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The door widens to ‘Opportunity Zones’ amid concerns about impact
