OPPORTUNITY ZONE INCENTIVES ARE CREATING JOBS AND INVESTMENT IN COMPANIES IN LOW INCOME COMMUNITIES
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It clearly achieves a phenomenally difficult yet hugely important economic and social objective .
With the new administration , the OZ marketplace is focused on potential regulatory changes to the OZ rules . The OZ industry is concerned about what legislation a new congress may impose : specifically , whether Senator Tim Scott ’ s IMPACT Act will pass after reintroduction , which would add significant reporting requirements for Qualified Opportunity Funds and their investors . Regardless of the potential changes , however , the future of the OZ tax incentive appears certain , given its clearly demonstrated success in attracting capital and jobs to OZs .
THE OZ SUCCESSES TO DATE
Documenting the success of OZs to date , in the “ Impact of Opportunity Zones : An Initial Assessment ,” 3 the Council on Economic Advisors reported the OZ incentives have attracted about $ 75 billion in equity into low-income communities . Moreover , the CEA report estimates that , as a result of the capital invested to date , over one million people have been lifted out of poverty and into self-sufficiency . 4 While these are estimates , many in the OZ industry think the investment amount is a fairly accurate measurement of activity in the marketplace .
As a result of the capital invested to date , over one million people have been lifted out of poverty and into selfsufficiency . the next five years . 5 In addition , the project will provide food security for the southeastern US .
150 FACTORY JOBS IN DOVER , DELAWARE
Corrugated packaging manufacturer , U . S . Corrugated , plans to build a 497,000 square foot , $ 80 million manufacturing plant near Dover . The location in an Opportunity Zone played a critical role in its selection of its expansion site .
200 RENEWABLE ENERGY JOBS IN SOUTH CAROLINA
BioEconomy Solutions , a biomass-based diesel feedstock company received an investment from IMPACT Carolina Fund to provide financing for renewable diesel plant in Georgetown , South Carolina . Over the next 12-to-18 months , the company will train farmers in the area and anticipate creating 200 renewable energy jobs at the plant .
50 MANUFACTURING JOBS IN ERIE , PENNSYLVANIA
Erie Insurance invested in the new plastics recycling plant operated by International Recycling Group . The $ 100 million IRG plant is expected to create 50 manufacturing jobs at the onset and additional jobs during its expansion . The high-tech plant will sort and separate plastics from homes and businesses reducing the amount of material that enters landfills .
100 GAMING , SOFTWARE JOBS IN ERIE , PENNSYLVANIA
Erie Insurance ’ s Opportunity Zone Fund invested $ 1.2 million in Whitethorn games . Whitehorn is an early-stage venture company that develops and publishes video games . James Grunke ,
Although much of the attention and most of the investment thus far has been in real estate projects , the positive CEA news and reporting on deals completed in the marketplace indicate the OZ incentives have been successful in stimulating job creation and investment . The following examples offer some sense of the breadth of the investment decisions to date . As changes to the tax incentive are considered by congress , it is critical to preserve those aspects of the OZ initative that encourage investors to invest and build in those communities that need help the most .
1,500 AGRICULTURE TECHNOLOGY JOBS IN RURAL SOUTH CAROLINA
Agriculture Technology Campus is one of the largest rural OZ projects in the country and one of the largest agriculture investments in South Carolina history . The GEM Opportunity Zone Fund project is a joint venture project between Mastronardi , Clear Water Farms , LiDestri Food and Drink . The plans involve a state-of-the-art , 1,000-acre agriculture technology campus in Hampton County , South Carolina . The combined $ 314 million investment is expected to create more than 1,500 new jobs over
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