Osage City designated as opportunity zone; opens tax incentives for investors – Osage County Online | Osage County News

Osage City designated as opportunity zone; opens tax incentives for investors

Osage City, Kan., has been designated as an opportunity zone after being one of 74 census tracts across Kansas nominated for the designation in April 2018. The opportunity zone designation by the U.S. Department of Treasury allows communities to be eligible to receive investments through Qualified Opportunity Funds to spur local economic growth.

Opportunity zones are an economic development tool enacted by the Federal Tax Cuts and Jobs Act of 2017, and offers investors preferential tax treatment for capital gains invested in designated low income communities. The program is designed to encourage long term investment in economically distressed areas and promote economic growth. The investments are to provide support to projects focused on a wide array of issues including downtown revitalizations, improvements to workforce housing, and expansions of industrial parks and innovation districts.

For the investor, the opportunity zone program offers tax incentives, including deferral and reduction of capital gains taxes when the gain is invested in a Qualified Opportunity Fund and maintained for a period of at least five years.

Osage City and its census tract was the only opportunity zone designated in Osage County, and the city’s industrial committee is working with the Kansas Department of Commerce to maximize the impact of this development tool. The committee is currently trying to identify housing and commercial projects that are well suited to take advantage of this designation.

Anyone who has a proposal for housing or commercial projects and would like to learn more about how the local opportunity zone can benefit investors is asked to contact Casey Mussatto, Osage City Industrial Committee chairman, or Rod Willis, Osage City manager.

Information thanks to the Osage City Chamber of Commerce.

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