AAC


ally benefit from the legislation. One significant part of the legislation was the establishment of “opportunity zones.” Opportunity Zones are a new community development


L


program designed to encourage long-term investments in low- income urban and rural communities nationwide. Te Op- portunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones. Gov. Asa Hutchinson announced in an April press release


that he had nominated 85 Opportunity Zones. In a follow up press release in May, the Governor announced the U.S. Treasury Department had approved all 85 of his nominations. “Treasury’s approval means that some of our communities


that are struggling economically will have the chance to enjoy the new opportunities that come with fresh thinking and new investment,” Gov. Hutchinson said. “Tis money is a down- payment on a better quality of life for many Arkansans.” Eligible zones are based on U.S. Census tracts, and gover- nors of each state may nominate up to 25 percent of eligible tracts for approval. Te U.S. Treasury Department has final approval over the designations. Tere are 337 eligible low-in- come community census tracts in Arkansas. Officials said those nominated were chosen based on their potential for economic suc- cess and ability to attract invest- ment. Te 85 designated zones in Arkansas span 49 counties. “I’m excited about the potential


Benton


Madison Carroll


Washington 49


§ ¨ ¦ Crawford Franklin Sebastian Scott Polk


investment that will be encour- aged in low-economic areas of our state,” the Governor said in a press release. “One of my goals as governor from day one has been to increase economic opportuni- ties for all Arkansans. By invest- ing in these high-potential areas, we will be able to breathe new life into communities and ensure our state remains economically diverse and healthy.”


Montgomery Howard Sevier Little River Nevada ¨ COUNTY LINES, SPRING 2018 § ¨ ¦


Miller 49


Pike Clark Dallas Ouachita Calhoun Drew Bradley Lafayette Columbia Union Ashley Chicot 0 Mapped by Arkansas Economic Development Commission 4/20/2018 15 25 50 Miles Cleveland Lincoln Desha Legend


Census Tract Nominated for "Opportunity Zone" (Total 85)


Garland Logan Yell Perry Pulaski Lonoke


Saline 30


Hot Spring § ¨ ¦ § ¨ ¦ 530 Grant Jefferson Monroe Phillips Arkansas Johnson § ¨ ¦ 40 Pope Conway Faulkner


ate last year the 115th Congress debated and ulti- mately passed the Tax Cuts and Jobs Act of 2017. Te media focused on the Republicans and Demo- crats fighting about tax cuts and who would actu-


GOVERNMENTAL AFFAIRS 85 areas qualify as Opportunity Zones


Te Opportunity Zone program does not guarantee investment will happen. Counties should work with the business community, nonprof- its, banks, and community develop- ment organizations to build a coali- tion to set up the proper funds. A unified front is attractive to inves- tors because they know when prob- lems arise, everyone will work to overcome the obstacles. “We will work closely with com- munities to find the right investment opportunities,” said Ar- kansas Economic Development Commission Executive Direc- tor Mike Preston, “that will create jobs to suit their workforce and local economic development efforts.” Te next step in the process is for the IRS to issue rules and


Josh Curtis


Governmental Affairs Director


regulations governing the Qualified Opportunity Fund, an in- vestment vehicle organized to make investments in Qualified Opportunity Zones.


ARKANSAS OPPORTUNITY ZONE NOMINATIONS Boone Marion Izard Newton Searcy Stone Van Buren Baxter Fulton Sharp


Independence Lawrence


Cleburne Jackson White Woodruff Prairie § ¨ ¦ 40 Lee Cross St. Francis Randolph Clay Greene Craighead Poinsett § ¨ ¦ 555 § ¨ ¦ 55 Crittenden


Mississippi


Hempstead


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