April 23, 2018

Malloy nominates 72 ‘Opportunity Zones’ for development program

HBJ File Photo
HBJ File Photo
Gov. Dannel P. Malloy

Gov. Dannel P. Malloy's administration recently nominated 72 low-income zones in 27 municipalities across Connecticut for a federal community development program.

The Opportunity Zone Program, unveiled in February, is meant to draw long-term investments in low-income communities and provides a federal tax incentive for investors.

Nominations include areas in Hartford, Bridgeport, East Hartford, Meriden, Middletown, New London, Stamford, West Hartford, West Haven, Manchester and New Haven, among others.

Under the $1.5 trillion federal Tax Cuts and Jobs Act of 2017, the program tasks state governors with submitting a plan to the federal government designating areas as "opportunity zones," which are approved by the the U.S. Department of Treasury. The state Department of Economic and Community Development oversees Connecticut's application process.

Qualified zones must have a poverty rate of at least 20 percent of a median income that does not exceed 80 percent of the area median income.

State officials said the program is meant to spur the scale of investments in underserved populations, helping to create new businesses, expand firms or new real estate developments.

Investments could include transit-oriented development, affordable housing and mixed-use development, and energy efficient and renewable energy projects.

In exchange, the program allows investors to decrease their federal tax burden.

Click here to view an interactive map of Connecticut's 27 nominated opportunity zones.

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