On Wednesday, Gov. Kay Ivey encouraged Alabamians to respond to the Alabama Department of Economic and Community Affairs’ request for public input regarding low-income areas where investors can receive federal tax incentives to invest their unrealized capital gains into the community.
These areas are called Opportunity Zones, and they were created as a consequence of the federal Tax Cuts and Jobs Act of 2017.
ADECA is now formulating a process to implement the recently signed Alabama Incentives Modernization Act using Opportunity Zones. The act provides an Alabama capital gains tax reduction for companies investing in Opportunity Zones, which may potentially attract more businesses to expand into these areas due to lowered taxes at both the federal and state level.
As a first step, ADECA is looking for recommendations from experts in the public and private sectors, as well as basically anyone who would be affected. That is a large portion of the population, as there are 158 Opportunity Zones across Alabama, including at least one in each of the state’s 67 counties.
ADECA Director Kenneth Boswell encouraged Alabamians to provide input to the agency so that they can see the full benefit from the Incentives Modernization Act.
If you would like to learn more about how to give your input, visit ADECA’s website.