ROME, N.Y. -- New York State is working to entice business developers to invest in areas that have high levels of economic distress. They’ve created what they’re calling Opportunity Zones.
Opportunity Zones can reduce tax payments by up to 15%. There’s even bigger incentives for those who hold investments for 10 or more years. Mohawk Valley Edge President Steve DiMeo talked about who is currently being targeted.
"Right now we’re probably looking more on the real estate side, so we’re trying to attract some investment capital into the urban centers here. So actually an example an opportunity fund project is the Air City Lofts project over at Griffiss that is one of the eligible census tracks in Rome," said DiMeo.
Air City Lofts is a mixed use development consisting of 84 apartments along with commercial space. It’s the first project in the Mohawk Valley that can take advantage of the Opportunity Zone incentives. Kate Jarosh is the Business Development Manager for Bonacio Construction, the developer for Air City Lofts.
"Something that’s really exciting about our project being in an Opportunity Zone is not only for us and our investment, but it’s also for businesses that want to do a start-up, because it’s not just about real estate, it’s also about businesses and the benefits of opening a business in an Opportunity Zone," said Jarosh.
Mohawk Valley Community College in Rome held a forum to educate people about the benefits of investing in Opportunity Zones, and take advantage of Opportunity Funds. Ann Rushlo is with the Mohawk Valley Association of Realtors who is helping to inform investors and developers.
"What people are really learning is what it takes to create an Opportunity Zone fund, what it takes to invest in an Opportunity Zone. The types of businesses and individuals that would really benefit from it, but also I think it allows people to start building a network of people that they can rely upon as they make those decisions to invest or locate in Opportunity Zones."
Any person or entity realizing significant capital gains, and looking to invest in real estate, may want to consider the incentives being offered in these Opportunity Zones.
For more information on Opportunity Zones and Opportunity Funds you can contact the Mohawk Valley Edge at: 315 338-0393 or go to their website: www.mvedge.org/.