To encourage investments statewide, Governor Ric Scott has introduced tax incentives to investors called, ‘Opportunity Zones.’ There are 427 counties under the low tax opportunity scheme including Sarasota and Manatee counties.
The idea is to target and build up distressed communities. By lowering taxes it should in return help grow jobs and business opportunities in areas that are in need of more growth. These tax cuts allow investors to invest their capital gains in certain investment funds called qualified opportunity funds. They will enjoy exclusion from income for a portion or all of deferred gain.
Cissy Proctor, Executive Director of the Florida Department of Economic Opportunity, said ‘The new Opportunity Zone program will bring the chance for growth home to hundreds of communities from the Panhandle to the Keys. This program will help capitalize on economic development that is already underway and provide a new toolbox for communities that are looking to grow their economy.’
Using an evaluation process looking over poverty rates, population, unemployment rates, and other economic factors is how each zone has been selected. This new tax scheme promises a lot to both investors and those living in the area.
