The New Tax Bill, Opportunity Zones and Redevelopment in Detroit

[Hypestyles]

there had better be a lot more announcements about redevelopment projects throughout the city this year.

[renf]

Yesterday, the Michigan State Housing Authority announced which census tracts in Michigan qualify as "Opportunity Zones" for the new federal tax law. The state may designate up to one-quarter of the census tracts in the state as "Opportunity Zones." According to the new tax law, investors who invest within these census tracts and hold on to their property for ten years will pay no capital gains taxes when they realize their capital gains. This was Senator Scott's attempt to encourage investors to invest in low income areas.
The areas designated as Opportunity Zones in Detroit include Indian Village, West Village and Palmer Woods which are hardly low income areas. However, all of the water front and downtown seem to be included. Much of Jefferson Chalmers and much of southwest Detroit is included. Here is a link to a map:
http://www.michigan.gov/mshda/0,4641...3034--,00.html

Does anyone know how the Opportunity Zones were selected by Governor Snyder's administration? I think census tract numbers are available so someone could determine if the Opportunity Zone in Detroit has a higher or lower overall poverty rate than the rest of the city. Will this new provision of the tax law stimulate investment in Indian Village, West Village, Detroit's Gold Coast and some low income neighborhoods?

[mwilbert]

Yesterday, the Michigan State Housing Authority announced which census tracts in Michigan qualify as "Opportunity Zones" for the new federal tax law. The state may designate up to one-quarter of the census tracts in the state as "Opportunity Zones." According to the new tax law, investors who invest within these census tracts and hold on to their property for ten years will pay no capital gains taxes when they realize their capital gains. This was Senator Scott's attempt to encourage investors to invest in low income areas.
The areas designated as Opportunity Zones in Detroit include Indian Village, West Village and Palmer Woods which are hardly low income areas. However, all of the water front and downtown seem to be included. Much of Jefferson Chalmers and much of southwest Detroit is included. Here is a link to a map:
http://www.michigan.gov/mshda/0,4641...3034--,00.html

Does anyone know how the Opportunity Zones were selected by Governor Snyder's administration? I think census tract numbers are available so someone could determine if the Opportunity Zone in Detroit has a higher or lower overall poverty rate than the rest of the city. Will this new provision of the tax law stimulate investment in Indian Village, West Village, Detroit's Gold Coast and some low income neighborhoods?

The map does not show Palmer Woods as included. It does include the State Fair area across Woodward, which is the Fairgrounds and the neighborhood south there around Goldengate. That area definitely deserves inclusion.