FOR IMMEDIATE RELEASE – April 12, 2018
For more information contact:
Aimee Courtaway, JCEDC
WARRENSBURG, MISSOURI RECOMMENDED FOR OPPORTUNITY ZONE
There is now another tool in the economic development toolbox for Warrensburg, Missouri.
Governor Eric Greitens and Senator Roy Blunt announced Tuesday the locations of 161 “Opportunity Zones” in Missouri including Warrensburg, Missouri. The locations of the Opportunity Zones were determined by the state, and made possible by the Tax Cuts and Jobs Act of 2017. The program seeks to revitalize and create jobs in areas that otherwise may not be considered by investors.
Local governments were asked to nominate areas for inclusion in the program by sending a written proposal to the Missouri Department of Economic Development. The Warrensburg, Missouri Opportunity Zone proposal was submitted by Johnson County Economic Development Corporation (JCEDC) on behalf of the City of Warrensburg.
Johnson County had three eligible Opportunity Zone census tracts, with two of them being contiguous and encompassing the western half of Warrensburg. The third eligible census tract exclusively included Whiteman Air Force Base and Knob Noster State Park. Because all of the property in the third eligible tract is owned by the State of Missouri or the Department of Defense, this tract was not nominated. Following the proposal by JCEDC, the two tracts in Warrensburg were nominated and recommended by Governor Greitens for inclusion. Expected to be officially designated by the U.S. Secretary of Treasury in the near future, the Opportunity Zone will be in effect for ten years following its designation.
The Opportunity Zone program offers three tax incentives for eligible investments through the qualified Opportunity Fund: temporary deferral, step up in basis, and permanent exclusion. The Opportunity Zone concept was proposed by the Economic Innovation Group who provided the following example of benefits: In contrast to a more traditional stock portfolio, come 2028, an investor will be $44 better off for every $100 of capital gains rolled into an Opportunity Fund in 2018.
Potentially, the Opportunity Zone incentive could be layered with other economic development incentives, including Small Business Administration–HUBZones, New Market Tax Credit Program, and in some areas the Johnson County Enhanced Enterprise Zone (EEZ) benefits. Specific rules and regulations are still being established by the U.S. Department of Treasury.
“The new Opportunity Zone will assist those who are looking to invest in Warrensburg by providing tax benefits up to 10 years,” JCEDC President Drew Lewis stated, “It gives Warrensburg an edge when competing for business and we look forward to getting the program started.”
“The City of Warrensburg is well positioned to continue the positive momentum currently taking place in the community. This Opportunity Zone nomination expresses a dedication from the state and federal government as partners in growth as well,” Warrensburg Mayor Bryan Jacobs said.
For more information, please contact Johnson County Economic Development Corporation (JCEDC). If your project does not qualify for Opportunity Zone benefits, other incentives may be available to assist you.