The Michigan State Housing Development Authority and Michigan Economic Development Corp. have launched a website dedicated to providing information on Michigan’s Opportunity Zones and corresponding tax incentives to investors, entrepreneurs, community leaders, developers, builders, and more.
“Thriving businesses are the backbone of local communities, and it is critical that we provide businesses and developers across the state with the tools they need to continue to invest in and help build vibrant communities,” says Michigan Gov. Gretchen Whitmer. “The more we can educate business owners and community leaders on Opportunity Zones and the benefits of investing in these areas, the more we’re helping our businesses and our people flourish. This website is an exciting resource to help with that mission.”
Opportunity Zones were created as part of the 2017 U.S. Tax Cuts and Jobs Act and are a national program designed to increase long-term capital investments in low-income communities that have experienced a lack of business growth.
There are three types of tax incentives that relate to the treatment of capital gains. Each is tied to the longevity of an investor’s stake in a qualified Opportunity Fund. The greatest incentives are reserved for investments held for 10 or more years.
Business Facilities recently ranked Michigan in the top 10 states in the nation for Opportunity Zones, and MSHDA is partnering with MEDC to offer education and resource planning for the zones. They will work with local municipalities across the state to help them market their zones to attract new development activities.
“At MSHDA, we’re advancing the conversation around Opportunity Zones and offering decision-makers across the state knowledge, tools, and resources to take advantage of what they have to offer,” says Gary Heidel, acting executive director of MSHDA. “Questions continue to come in about what Opportunity Zones are and how business owners and community leaders can take advantage of them. This website will answer those questions and more as a one-stop, comprehensive resource aimed at giving interested parties information they can use to engage in our Opportunity Zones.”
The gain from sales of appreciated assets, such as works of art of antiques, can also be reinvested into a qualified Opportunity Fund. Then, depending on how long the investment is held, tax benefits accrue in five, seven, or 10 years.
“Michigan’s communities, particularly our Redevelopment Ready Communities, are well poised to take advantage of Opportunity Zones investment to provide more opportunities for growth and development across the state,” says Jeff Mason, CEO of MEDC. “Working together with our partners at MSHDA and other state agencies, we are working to make more businesses and developers aware of the benefits of investing in our Opportunity Zones, and this new website will be an important resource in helping to tell that story.”
There are 288 Opportunity Zones census tracts in Michigan, with 23 percent of those existing in rural areas. In total, there are more than 8,760 qualified Opportunity Zones across the U.S. and its territories.
The website is called miopportunityzones.com. Information about Redevelopment Ready Sites located in Certified Redevelopment Ready Communities can be found here. Developers can also access available business development sites in Opportunity Zones here.