On April 9, 2018, the U.S. Department of Treasury and the IRS approved Opportunity Zones for: American Samoa; Arizona; California; Colorado; Georgia; Idaho; Kentucky; Michigan; Mississippi; Nebraska; New Jersey; Oklahoma; Puerto Rico; South Carolina; South Dakota; Vermont; Virgin Islands; and Wisconsin. The Treasury Department has made the final designations of Opportunity Zones in more states during June 2018.
Use this interactive map to locate eligible zones in your state.
Opportunity Zones are communities where new investments may be eligible for significant tax incentives. The zones are based on Census Tracts that meet income criteria, and were created in the federal Tax Cuts and Jobs Act of 2017 as a means of helping economically depressed areas through tax incentives for new private investments.
Investors can defer tax on prior gains invested in a Qualified Opportunity Fund (a fund set up to make investments in Qualified Opportunity Zones). In addition, if investors hold the investment in the Opportunity Fund for at least five years they are eligible for capital gains tax reductions or exemptions. If they hold the investment in the Opportunity Fund for at least ten years, they are eligible for an increase in its basis equal to the fair market value of the investment on the date that it is sold.
Brownfields and Opportunity Zones
Many of the communities in the Opportunity Zones have properties impacted by environmental contamination. The Opportunity Zones program provides an economic tool to attract developers and financial backing to communities with brownfield redevelopment needs.
If you are interested in investing in a potential brownfield site, contact SCS Engineers to help you evaluate and manage environmental concerns associated with your site. Visit www.scsengineers.com to learn more.
Operational expenses such as replacing collection vehicles, considering and implementing recycling programs, and the impact of stricter environmental regulatory programs can all affect collection fees and the quality of service. Strategic business planning solves the ongoing process whereby an organization determines where it is going… plus how it will get there, and what tools and resources it will use.
The City of Killeen recently worked with SCS Engineers to create a 20-year master plan with modeling capabilities to determine the optimum scenarios that benefit the surrounding communities and one that helps manage environmental safety and the outlay of capital before the expense of planning, designing, and building begins. Population projections, demographics, cost and historical data, among other resources, make up the information that is then organized and analyzed to prepare projections based on changing scenarios over a period of years. This type of economic study enables the planning team on any proposed project to provide a “what if” analysis for the decision-makers with the potential impact a proposal may have on customer rates and fees.
The collaborative effort between the City and SCS has culminated in a long-term financial roadmap and planning tool, which evaluates the impact of operational expenses and provides a basis for planning capital expenditures. The plan is already in use by the City’s decision-makers to determine the efficiency of investing in equipment and a Material Recovery Facility (MRF) as part of a waste management plan. Key outputs of this study included the justification for the City’s acquiring new collection equipment and further assessment of the feasibility of implementing single-stream recycling.
This type of business analysis requires technical expertise in the many aspects of waste management. You’ve got to dig deep into the conditions that present a financial, environmental, or quality challenge to managing wastes in order to deliver a system that is serviceable for decision-makers to use for many years.
