Looking for a tax break? Fresno wants you to invest money in this program
Fresno Mayor Lee Brand announced a joint effort on Wednesday to draw investments in local industry and other projects from wealthy stakeholders who are looking for federal tax breaks.
Opportunity Fresno is a federal program that allows investors to use capital gains, which is money they gained from selling their assets, as an investment into a fund for designated parts of the city and county — without having to pay a capital gains tax for a decade.
After that, the investor pays 85% of the gains tax.
There are 47 opportunity zones in Fresno County, and 36 found within the city of Fresno. Along with the announcement, Brand unveiled the website, www.opportunityfresno.com.
“This website is a key component of our strategic effort to connect key players in the development industry with existing local ventures eligible for the Opportunity Zone incentive program,” Brand said. “It also provides a platform for local business owners and developers to showcase new investment opportunities and show the world why it’s great to work, live and play in Fresno.”
Fresno’s priorities for the program, according to Brand, include adding affordable and market-rate housing close to downtown and transit corridors, attracting jobs from Silicon Valley, increasing industries like food processing and improving access to capital for minority-owned businesses, among others.
Opportunity Zones are part of the Tax Cuts and Jobs Act of 2017. The zones are based on U.S. Census tracts with a poverty rate of at least 20% or areas where the average family makes 80% of the statewide median income.
The online version of the potential investments make them readily available to anyone around the country, according to Lee Ann Eager, CEO of the Fresno County Economic Development Commission.
“We are proud of the collaborative public-private partnership behind Opportunity Fresno and believe that it will serve as an insightful tool for investors, businesses and participating projects to showcase Fresno County as investment-ready and investment-worthy,” she said.
Projects on the website already looking for investors include the Econo Inn, S.A.G.E. Biorefinery, Shake Energy and Sierra Agra.
This story was originally published February 19, 2020 at 2:30 PM.
