REP. MIKE KELLY, SEN. TIM SCOTT AND SECRETARY SCOTT TURNER: Save the Opportunity Zones before it’s too late

In 2017, Congress passed 1 of the astir consequential pieces of authorities successful the past quarter-century. When President Donald Trump signed the Tax Cuts & Jobs Act (TCJA), the instrumentality spurred economical maturation the United States hadn’t seen successful a generation. Wages increased, and unemployment decreased. Americans were capable to currency their paychecks and spell location to their families with much wealth successful their pockets.  

Now, 8 years later, large TCJA provisions are up for renewal. Among them: Opportunity Zones, a successful, bipartisan portion of authorities that is transforming underserved communities successful existent time.  Opportunity Zones person made an unthinkable interaction crossed our nation. 

The Opportunity Zone (OZ) inaugural allows investors from each implicit the United States to put their superior gains net successful economically distressed communities wherever caller investments tin beryllium eligible for preferential superior gains taxation treatment. Instead of sitting idle successful a brokerage oregon slope account, this wealth is enactment to enactment successful communities that person not seen important backstage concern for immoderate time. 

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This pro-growth taxation argumentation offers important incentives that bash not outgo American taxpayers a azygous cent. In 2017, this benignant of argumentation whitethorn person seemed unbelievable to immoderate wrong the Beltway. Despite the skepticism, OZs are actively transforming communities and creating economical opportunities for families successful the poorest zip codes.  

President Donald Trump's Tax Cuts & Jobs Act spurred economical growth. (AP Photo/Alex Brandon)

Erie, Pennsylvania whitethorn champion exemplify the economical benefits and the tangible changes Opportunity Zones tin make successful a comparatively abbreviated play of time. In 2018, the city’s downtown ZIP code, 16501, was named the poorest successful Pennsylvania and among the poorest nationwide.  However, done the imaginable of OZs, the stigma of Pennsylvania’s poorest ZIP codification served arsenic a springboard for concern successful the area. 

Shortly aft TCJA was signed into law, a radical of section residents recognized however Opportunity Zones could revitalize the city. Major employers, section universities and different organizations partnered to supply archetypal fiscal backing to signifier the Erie Downtown Development Corporation (EDDC).  

To date, EDDC has leveraged much than $115 cardinal successful backstage concern into downtown Erie, which has built 108 caller afloat occupied residences, revitalized and created much than 100,000 quadrate feet of caller commercialized space, and established abstraction for 25 caller businesses. Overall, $400 cardinal of semipermanent superior concern is astatine work, breathing caller beingness into Downtown Erie. 

These investments person a proven way grounds of revitalizing tiny businesses and residential areas portion fostering innovation successful exertion and manufacturing — an manufacture wherever South Carolina excels. Projects similar the South Carolina Technology & Aviation Center (SCTAC) person generated implicit $6.1 cardinal successful investments and created much than 18,000 caller jobs successful the section community. This further underscores the value of Opportunity Zones, which person been and volition proceed to beryllium impactful. 

Additionally, Opportunity Zones person played a important relation successful assisting the revitalization of antecedently overlooked communities, transforming them into economical powerhouses. In Oconee County, South Carolina, investors transformed a textile mill built successful 1875 on Lake Hartwell into 197 caller residential apartments. The task besides incorporated retail and recreational amenities, including the restoration of the historical dam and the instauration of nationalist greenish spaces and trails.  

Nationally, Opportunity Zones person generated $89 cardinal successful backstage concern crossed much than 5,600 designated communities, and this concern spurred the instauration of implicit 500,000 jobs successful the archetypal 2 years alone. According to a study released successful March by the Economic Innovation Group (EIG), a bipartisan nationalist argumentation enactment based successful Washington, D.C. The authorities besides has a far-reaching interaction — astir 1 successful 10 Americans unrecorded successful an Opportunity Zone. That fig could soon grow. 

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The EIG study besides indicates that OZs "caused an summation of 313,000 caller residential addresses (not counting units presently nether construction) successful designated communities from Q3 2019 to Q3 2024 – astir doubling the full magnitude of caller lodging added to these communities implicit that period." 

Moreover, the Council of Economic Advisors recovered that the Opportunity Zone designation unsocial caused a 3.4% summation successful location values successful these areas, which translated to an estimated tens of billions of dollars successful caller wealthiness for the Opportunity Zone residents who ain their homes. 

 In 2018, the city’s downtown ZIP code, 16501, was named the poorest successful Pennsylvania and among the poorest nationwide.  However, done the imaginable of OZs, the stigma of Pennsylvania’s poorest ZIP codification served arsenic a springboard for concern successful the area. 

By empowering the backstage assemblage and cutting reddish tape, Opportunity Zones alteration projects to determination much efficiently and astatine a little outgo portion simultaneously addressing 1 of the astir pressing needs successful low-income communities – prime affordable housing. 

From the precise commencement of the 2017 taxation law, we knew the Opportunity Zones inaugural would beryllium a gamechanger. It was made for shovel-ready projects successful neighborhoods that needed the assistance the most. As we look up to 2025, the aboriginal is agleam successful places similar Erie and Oconee County. The EDDC is preparing to interruption crushed connected different $22 cardinal project, which includes 37,000 square-feet for commercialized bureau and retail space.  

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However, if Congress fails to widen TCJA and Opportunity Zones provisions expire, we could spot projects years successful the making wholly upended overnight, on with the largest taxation hike successful modern history.  

It’s captious that Congress extend, grow and marque the 2017 taxation cuts imperishable truthful moving families, tiny businesses, and communities nationwide tin proceed to person the benefits of this authorities – and taxation cuts astatine ample – for years to come. 

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CLICK HERE TO READ MORE FROM SEN. TIM SCOTT

Republican Tim Scott represents South Carolina successful the United States Senate. He is writer of the book, "America, a Redemption Story: Choosing Hope, Creating Unity." 

Secretary Scott Turner leads the U.S. Department of Housing and Urban Development. He antecedently served arsenic enforcement manager of the White House Opportunity and Revitalization Council, wherever helium championed Opportunity Zones during the archetypal medication of President Donald J. Trump.