May 22, 2018

Feds OK all 72 CT 'opportunity zones'

Connecticut has won federal approval of its 72 "opportunity zones'' (OZs) statewide, including seven in New Haven, making them eligible to lure tax-favored private investment to improve housing and jobs in the neediest areas, authorities say.

Gov. Dannel P. Malloy on Friday announced the U.S. Treasury ratified all 72 OZs that were nominated by the state Department of Economic and Community Development and the state Department of Housing.

As previously reported, OZs stem directly from recent federal income-tax reform, which authorized formation of "opportunity funds.'' Fund investors can put up capital to leverage additional investment, in exchange for long-term federal tax deductions against future capital gains.

Qualified census tracts are those with a poverty rate of at least 20 percent of a median income that does not exceed 80 percent of the area median income.

"Since day one, my administration recognized the critical need to revitalize our cities and turn them into engines for economic growth," Malloy said in a statement. "Our urban centers are now ripe with potential, and the investments made possible through this program will further strengthen our resolve to foster growth in Connecticut cities. With these approvals today, we are pleased that all of Connecticut's opportunity zones can now move forward."

New Haven's zones encompass Long Wharf and the area surrounding Yale New Haven Hospital, as well parts of the Fair Haven, Wooster Square, Dixwell and Newhallville neighborhoods.

Other New Haven and Middlesex county municipalities approved for zones are Waterbury, Meriden, Middletown, West Haven, Hamden, Ansonia and Naugatuck.

Click here for an interactive map showing all of Connecticut's opportunity zones.

Natalie Missakian contributed to this story

Free E-Newsletter

Sign up now for our New Haven Biz
e-newsletter! Click Here

Subscribe to print for free

Premier issue coming in October. Click here to subscribe

Copyright 2018 New England Business Media