NEWPORT NEWS — Gov. Ralph Northam included seven Newport News census tracts among the 212 Opportunity Zones he nominated to the U.S. Department of Treasury last week, according to city officials.
Opportunity Zones are a new revitalization tool resulting from the Federal Tax Cuts and Jobs Act of 2017.
The zones will allow investors to receive tax benefits on currently unrealized capital gains by investing those gains in census tracts designated as Opportunity Zones. The federal program is designed to drive long-term capital investment to low-income urban and rural communities, according to a news release from the city.
The process for Northam’s nominations included input from localities to recognize the needs and opportunities at the level of government closest to investors and residents. The U.S. Treasury Department has 30 days to respond to the governor’s nominations and is expected to accept and approve them as nominated, establishing Virginia’s Opportunity Zones by late spring of this year, officials said.
However, the rules associated with qualification of investments must also be written at the federal level and are not anticipated to be formalized until later this year.