New tax incentive created for businesses in low-income areas

A new tax incentive could help businesses stay open and new businesses come to the Northstate.

The U.S. Department of the Treasury and the IRS designated opportunity zones in 18 states where the tax breaks would apply. Many of which are in the Northstate.

States nominated low-income areas to be designated as opportunity zones, then the IRS selected the areas that would receive breaks on capitol gains taxes.

The federal government hopes these incentives will spur investment in distressed communities throughout the country.

The dark spots on the map you can find here cover the opportunity zones these are places deemed low-income communities.

Qualified opportunity zones will retain the designation for 10 years. The list of zones list is current as of April 9 and will be updated regularly as new designations are made.

Congressman Doug LaMalfa (R) issued the following statement:

"The creation of Opportunity Zones was a critical component of our new tax law that will help to develop and revitalize distressed communities. Unfortunately, there are many areas in the North State that are in dire need of economic stimulation, but the tax breaks offered by this designation will do a lot of good in our communities. I'm pleased that Treasury and the IRS selected many areas in the North State for the first round of designations. Opportunity Zones are yet another lesser-known provision of the Tax Cuts and Jobs Act that will directly benefit residents in rural California."

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