In the (Opportunity) ZoneFebruary 12, 2019
In 2018, Nevada Governor Brian Sandoval designated four Opportunity Zones that include the City’s historic downtown core and the Lake Mead and Boulder Highway corridors. Known locally as the Water Street District, Downtown Henderson is located in the officially designated Downtown Redevelopment Area and is home to City Hall, the Henderson Justice Facility, Henderson Convention Center, and Downtown Recreation Center. The Lake Mead and Boulder Highway corridors both serve as inviting gateways into Downtown Henderson and this confluence of thoroughfares is evolving into an increasingly vibrant hub with growing clusters of commercial activity and walkable complete streets.
The four designated Opportunity Zones overlap with our Downtown and Eastside Redevelopment Areas, and are a focal point for the City’s education, workforce development, redevelopment and reinvestment efforts. Renewed development is already taking shape in and around our Opportunity Zones with new businesses such as TSK Architects, Public Works Coffee Shop, Lovelady Brewery, and Juan’s Flaming Fajitas restaurant locating on Water Street.
Created by the 2017 tax reform law, Opportunity Zones are a new program to spur investment in distressed neighborhoods by providing tax benefits to investors. Taxpayers selling appreciated assets may roll their capital gains into a Qualified Opportunity Fund that invests in a zone.
Proponents of the program point out that there is a $6 trillion pool of appreciated assets that could be unlocked by these Opportunity Zones nationwide. The program provides two benefits. First, the capital gains taxes that would normally be due on the initial assets invested into a fund are deferred until December 31, 2026. Second, investments in the fund that are held long-term get to permanently exclude a portion of any subsequent gain: ten percent of the gain is excluded if held for longer than 5 years, fifteen percent is excluded if held for more than 7 years, and one hundred percent of the gain is excluded if held for more than 10 years.