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Opportunity Zones

 

Brownwood, Texas has been designated as an opportunity zone by the State of Texas. This designation makes Brownwood an attractive community for investors with excess capital looking to reduce capital-gains tax burdens through long-term economic development projects. Here are the details.

What is an Opportunity Zone?

An “opportunity zone” program was established by the Congressional Tax Cut and Jobs Act of 2017. The innovative program is designed to spur long-term private sector investments in low-income urban and rural communities throughout the nation. The program allows investors with capital gains tax liabilities to receive favorable tax treatment for investing in Opportunity Funds certified by the U.S. Treasury Department. Under the program, Opportunity Funds use the capital invested for equity investments in businesses and real estate in Opportunity Zones designated by individual states.

Why did Congress create Opportunity Zones?

  • Decreased economies | More than half of America’s most economically distressed communities contained both fewer jobs and businesses in 2015 than they did in 2000.

  • Decreased entrepreneurship | New business formation is near a record low, especially in distressed communities. The average distressed community saw a 6% decline in local businesses during the prime years of the national economic recovery.

  • Decreased diversity | Between 2010 and 2014, five metro areas produced as many new businesses as the rest of the country - combined - making the national economy disproportionately dependent on the growth of these limited metros.

What does an Opportunity Zone mean Opportunity for Investors?

It means that investors can leverage opportunity zones to invest in long-term projects in exchange for reduced or eliminated capital-gains tax burdens depending on the length of the investment. U.S. investors hold more than $2.3 trillion in unrealized capital gains. This is a significant untapped resource for economic development in distressed communities.

Investor Incentives

Opportunity Funds allow investors throughout the country to deploy their resources as long-term investments in certified zones with benefits tied to investment longevity.

Economic Development Opportunities Brownwood

Why Choose Brownwood

In addition to its opportunity zone designation, Brownwood offers additional incentives for investors as the city recruits entrepreneurs and businesses to the downtown area.

Incentives

The Building Improvement Incentive Program is administered by The Brownwood Municipal Development District (BMDD). The program is designed to encourage the revitalization and improve Brownwood’s commercial buildings in the downtown corridor and offers a match of up to $20,000.00 for approved improvement projects. (Incentives will be awarded for commercial building improvements that restore, rehabilitate, enhance or beautify a structure.)  

Tax abatements, low-interest loans, capital improvements for infrastructure, and streamlined permitting are all incentives offered by the BMDD. For a full list of incentives, click here.  

Community Initiatives

Brownwood’s population of more than 18,500 residents represents strong workforce potential. Additionally, the city actively fosters workforce population through both business and residential relocation strategies as well as a tourism incentive making hospitality projects attractive to investors.

To learn more about available incentives, qualifications requirements, and available properties contact the BMDD at bmdd@brownwoodtexas.gov.

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