Leggett Hails “Opportunity Zones” for Economic Development in Montgomery County

For Immediate Release: Monday, June 11, 2018

The U.S. Treasury Department has approved 14 designated areas of land in Montgomery County for the nationwide Opportunity Zone program, which provides federal tax incentives to spur investment in underserved communities by attracting investment. These incentives can spur further economic development in the form of job creation and revitalization, providing new opportunities for business, housing, and retail growth.

“This is good news for economic development, “said Montgomery County Executive Ike Leggett. “These 14 zones are located across Montgomery County, from Germantown to Wheaton, and we are planning an outreach program along with the Montgomery County Economic Development Corporation to make sure investors know about these federal tax incentives.”

Created under the 2017 Tax Cuts and Jobs Act passed, the Opportunity Zone program is a new initiative to incentivize investment in underserved communities by providing significant federal tax incentives. The program offers three tax incentives for capital gains that are reinvested into designated census tracts, known as Opportunity Zones.  Investors may defer paying taxes by investing in a qualified fund and receive increasing discounts on any capital gains taxes due on that money. If they leave their investment in the Opportunity Fund for 10 years, any new gains are free of capital gains taxes.

Full implementation of the Opportunity Zone program is expected to begin in the fourth quarter of 2018.

Some of the 14 tracts in Montgomery County are located near the Metro’s Red Line and the future Purple Line:

Montgomery County Opportunity Zones

Map (Zoom to see zones, dark green census tracts are Opportunity Zones.)

• Montgomery College’s Germantown Campus
• Four census tracts in Gaithersburg
• Rockville Pike in-between Rockville Town Center and the Twinbrook Metro Station
• Downtown Wheaton
• Two census tracts in Downtown Silver Spring
• Two census tracts in White Oak
• Three census tracts in Long Branch along the future Purple Line

For more information about Maryland’s opportunity zones, visit the state’s website.

# # #

 

Release ID: 18-591
Media Contact: Ben Rickelman 240-777-2563