Snyder: Cumberland Township designated as Qualified Opportunity Zone
Designation gives tax benefits to investors in low-income communities
CARMICHAELS, June 15 – The federal government has approved Cumberland Township, Greene County, as a Qualified Opportunity Zone, giving tax incentives to those who invest in businesses, real estate and other ventures within its borders, state Rep. Pam Snyder announced today.
Snyder, D-Greene/Fayette/Washington, said the designation was meted out to 300 low-income communities across Pennsylvania, as a means to help economically distressed areas garner investments that could secure their turnaround.
“This is a valuable tool in attracting development to Cumberland Township,” Snyder said. “These Qualified Opportunity Zones provide an incentive for investors to put their unrealized capital gains to work, in ways that have a direct impact on promoting growth.”
Snyder said the program gives investors tax benefits for investing their capital gains in low-income community census tracts, as well as certain tracts adjacent to low-income tracts. It applies to private investors making private equity investments in funds that will then invest in businesses, real estate, and other ventures in low-income communities. The incentive offers deferral, reduction, and potential elimination of certain federal capital gains taxes.
The fund model also will enable a broad array of private equity fund managers and investors to pool their resources, increasing the scale of investments going to under-served areas.
Snyder said the Cumberland Township designation was approved by the U.S. Treasury Department and announced through the state Department of Community and Economic Development.