HB 3039 effectively eliminates federal tax incentives for investment in Opportunity Zones in Oregon. The bill, which is currently before the House Revenue Committee, has not been calendared for consideration. Public hearing on the bill was held on 3/21/23.
In 2018, Opportunity Zones (for long-term investment in historically disinvested areas) were created in designation zones across the country. Oregon Governor Kate Brown nominated 86 qualified opportunity zones in Oregon. The OZ program provides a significant tax incentive for investment in distressed and low-income areas and serves as a catalyst for economic development in those designated Zones.
This legislation would significantly diminish positive economic development and jobs in areas of great need. OZ projects often make possible the very transit-oriented, mixed-use, affordable housing, and commercial developments local communities desire. Effectively the bill, as proposed will raise a 9.9% tax on capital gains for certain investments with none of those funds coming back to the state.
Testimony by Beaverton Mayor Lacey Beaty in opposition to the legislation.
Testimony by Oregon Business & Industry in opposition to the legislation.
No comments:
Post a Comment