The New Localism
By Bruce Katz & Jeremy Nowak
June 26, 2018
Yesterday we released a policy brief entitled “How States Can Maximize Opportunity Zones”. The paper was written in concert with our good friends, Jamie Rubin and Dan Berkovits, under the aegis of The Governance Project, a new non-profit that aims to help state and local leaders leverage the private sector and private capital to deliver new solutions to critical challenges.
Our policy brief lays out a plan of action for states to realize the full economic and social potential of this unique tax incentive. To recount, the Tax Cuts and Jobs Act of 2017 provides a new incentive – centered around the deferral of capital gains taxes — to spur private investments in low-income areas designated as Opportunity Zones. Given the significant interest among investors, it is possible that this new tax incentive could attract tens of billions of dollars in private capital, making this one of the largest economic development initiatives in U.S. history.