Albuquerque Business First
By Ron Davis
August 28, 2019
Investors who put money in economic development projects in select low-income communities are set to have another incentive to do so.
The New Mexico Department of Economic Development unveiled Tuesday an opportunity zone incentive, which will guarantee an additional $1 million in Local Economic Development Act funding to projects that are located in one of 63 opportunity zones across New Mexico and fit into a number of criteria from the economic development department.
Created by the “Investing for Opportunity Act” of December 2017, "opportunity zones" are low-income communities ripe for economic development. Under the new tax legislation, any taxpayer in the country can defer, reduce and exclude capital gains taxes through timely opportunity zone investments but they must invest through a Qualified Opportunity Fund, according to the Internal Revenue Service.
“One of the goals of my administration is to spread investment to all corners of New Mexico and we want to use every tool we can to accomplish that,” said Gov. Michelle Lujan Grisham in a statement. “That’s why we are going 'all in' for opportunity zones and giving an extra boost to help these communities."