Tag: Opportunity Zones
MONTGOMERY — A recently-passed bill aimed to spur job growth in rural and urban areas of the state has been signed into law by Gov. Kay Ivey.
Sponsored by Rep. Bill Poole, R-Tuscaloosa, House Bill 540, dubbed the Alabama Incentives Modernization Act, is a set of tax incentives designed to enhance development in counties that are experiencing slow economic conditions and to help bring new technology companies to the state. Proponents of the legislation say it enhances current incentives, encourages investments in designated opportunity zones and offers a capital gains tax cut for tech companies moving to Alabama. Read more.
Alex Flachsbart’s business cards were hot properties at the Jefferson County Courthouse Tuesday after his presentation to the County Commission about opportunity zones in the area.
The founder and CEO of the nonprofit Opportunity Alabama briefed the commission on his group’s work with Opportunity Zones, which encourage investment in low-income areas.
“Our goal is to rally the ecosystem here in the state of Alabama around opportunism,” he said.
Flachsbart, a former tax attorney, said the zones were created with the passage of the tax bill in December. The idea is to give tax breaks to investors who put their money into a fund that then invests in businesses and real estate projects in low-income areas. The incentives grow the longer the money stays invested, he said.
“(It goes) all the way to the point where if you’re an investor who keeps their money in a fund that’s invested in the local community for 10 years or longer, you don’t pay any tax at all on the appreciation of your investment,” he said. “If I make a good bet on a place like Ensley, or a place like East Lake or a place like Fultondale, the good news (is) that, if my investment substantially improves, I get to walk away tax-free after 10 years.” Read more.