In the wake of COVID-19, zones will help lead recovery in low-income communities.
(Washington, D.C.) – As the country begins to reopen from the coronavirus pandemic, U.S. Senators are joining together to ensure the strongest possible path forward in economic recovery.
In 2008, the financial crisis showed the United States that low-income communities are often the first to be hit and the last to recover during economic instability.
Opportunity Zones is a tool that aims to assist the most economically distressed communities. U.S. Senator Todd Young (R-Ind.) and Tim Scott (R-S.C.) along with their Senate colleagues are asking the U.S. Department of the Treasury and the Internal Revenue Service (IRS) to modify certain rules of the road for businesses and investors in Opportunity Zones.
“In order for our nation’s Opportunity Zones to reach their full potential, it is critical that we provide the necessary flexibility to these entrepreneurs, community-based organizations, developers, and investors to cope with this pandemic and not wrongfully punish Opportunity Zone businesses and funds alike simply because of the obstacles COVID-19 has created. Relief focused on giving stakeholders, projects, and businesses additional time and flexibility to meet Opportunity Zone requirements, timelines, and thresholds will enable Opportunity Zone businesses to weather the storm and be part of the robust post-COVID economic recovery,” the Senators wrote.
These Senators made 10 specific requests in regards to the significant impacts that the coronavirus pandemic will have on Opportunity Zone businesses. These requests include community organizations, entrepreneurs, and developers working to use the incentive to promote change in the most distressed areas of the country.
Read the full letter from the U.S. Senators here.