The Qualified Opportunity Zone tax advantage could be used to attract investment capital to start businesses that hire workers sidelined by coal mine or plant closings.
As part of the 2017 law, Congress enacted a set of tax incentives for investments in “Qualified Opportunity Zones” (QOZ) to encourage private investment in economically distressed communities.
Opportunity zones can offer access to new streams of capital investment in communities experiencing job loss due to fossil fuel plant closures, enabling these communities to develop new businesses and employment opportunities.
Many States Officials are promoting the economic and social value of QOZ investments. California has 879 QOZ, and released a study noting that between $745 million and $1.2 billion in new economic activity in QOZs could be generated this year, which could help local economies become more sustainable and inclusive. Both California and Colorado have specific QOZ websites to promote the economic advantages.