The Tax Cuts and Jobs Act of 2017 included the creation of a new tax-incentive aimed at increasing private investment in low income census tracts (the same census tracts as defined by the New Market Tax Credit program). The law requires the Governor of Vermont to submit a recommendation to the Secretary of the Treasury naming up to 25 census tracts as “Opportunity Zones.” Investors in these zones will receive preferential tax treatment when they invest in a newly created “Opportunity Fund.” The Governor has until March 21, 2018, to make recommendations to the Secretary of Treasury, with the ability to seek a 30 day extension to April 21, 2018. The Agency is seeking input on which census tracts should be designated Opportunity Zones.
On Friday, March 9, Governor Scott issued his draft recommendations, including 25 census tracts in 16 communities (click here to view map):
Barre City (southwest of Main Street) – census tract 50023955200
Bennington (downtown and north) – census tracts 50003971200 and 50003970900
Brattleboro (downtown and north) – census tracts 50025968500 and 50025968600
Burlington (waterfront, Pine Street Corridor, downtown) – census tracts 50007001000 and 50007000500
Johnson – census tract 50015953200
Lyndon (downtown Lyndonville and West of Broad and Main Street) – census tract 50005957200
Newport City – census tracts 50019951500 and 50019951400
Rockingham (Bellows Falls) – census tract 50025967000
Royalton – census tract 50027965100
Rutland City (downtown core, west, and south) – census tracts 50021963300, 50021963100, and 50021963200
St. Albans City (west of Main Street) - census tract 50011010700
St. Johnsbury – census tracts 50005957400 and 50005957500
South Burlington including City Center – census tract 50007003600
Springfield – census tracts 50027966600 and 50027966700
Vergennes – census tract 50001960300
Winooski – census tracts 50007002500 and 50007002400
Final feedback concerning these recommendations is due Friday, March 16, in accordance with the public feedback schedule established below.:
|Parties provide input on census tract selection, including adjoining non-NMTC census tracts:||February 14, 2018|
|The Agency publishes a draft recommendation on the web at accd.vermont.gov/OpportunityZones:||February 23, 2018|
|Parties provide feedback on the draft recommendation:||March 6, 2018|
|The Agency publishes a final draft recommendation on the web at accd.vermont.gov/OpportunityZones:||March 9, 2018|
|Parties provide feedback on the final draft:||March 16, 2018|
|Final recommendation made to Governor||March 20, 2018|
All input should be submitted via email to firstname.lastname@example.org. If an organization has already submitted material before issuance of this memo, there is no need to resubmit.
Treasury’s guidance, and the information resource they will use as supporting evidence to any designation, is available at: https://www.irs.gov/pub/irs-drop/rp-18-16.pdf.
Also, please find the authorizing language from the Tax Cut and Jobs Act of 2017.