New Market Tax Credits & Opportunity Zones – get to know more about the topic
New Market Tax Credits (NMTC) are a tool for creating jobs in markets where economic growth has been a challenge.
The NMTC program was established as part of the Community Renewal Tax Relief Act of 2000. The goal of the program is to spur revitalization efforts of low-income and impoverished communities across the United States. The NMTC Program provides additional capital to projects located in low-income communities that provide impactful community benefits.
And while one might not think of Laramie as a “low-income and impoverished” community, much of Laramie does qualify for this program based on the U.S. census data mapping.
Funding for the program comes from allocations from the U.S. Treasury Department to Certified Community Development Entities.
New to community development programs, Opportunity Zones (OZ) differ from the NMTC but follow the same U.S. Census data map. Established by Congress in the Tax Cuts and Job Acts of 2017 the OZ 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. The program is intended to encourage long-term investments in low-income urban and rural communities. "Opportunity zones are another tool to help create new jobs and wealth in Wyoming.", said Sarah Fitz-Gerald, Industrial Development Manager at the Wyoming Business Council.
Communities across the state, including Laramie, have submitted their information to the Wyoming Business Council (WBC) for consideration to be dedicated Opportunity Zones. The WBC will make recommendations to Governor Mead on which 25 of the 56 tracts in the state it believes have the greatest opportunity to create wealth and jobs as designated Opportunity Zones. The limit of 25 zones in Wyoming was set at the federal level.