Opportunity Zones May be Phased Out in Chambers County

By Gloria Way

  Item #5.4 – Discuss and consider a Resolution nominating Census Tract 48071710401 for designation as a Qualified Opportunity Zone under the Opportunity Zone 2.0 Program was pulled Tuesday morning by Chambers County Commissioners Court during its regular meeting.  An Opportunity Zone is a federal program created during President Trump’s first term and was made permanent and restructured as Opportunity Zone 2.0 through Section 70421 of the One Big Beautiful Bill Act. It provides federal capital gains tax incentives for private investments in designated census tracts by allowing investors to defer and reduce tax liability when capital gains are reinvested through Qualified Opportunity Funds in designated areas.

  To be eligible, a tract must have a median family income (MFI) less than 70% of state/metro MFI; or poverty rate greater than or equal to 20%, and MFI less than or equal to 125% of state/metro MFI. The opportunity zone, which uses census information, is seen as an incentive to bring private investment to an economically depressed area and encourages investment to bring more jobs to said area.

  Chambers County currently has three opportunity zones. Each zone has a 10-year designation. Each of the current three zones expires on 12/31/2028. If the three zones are not renewed, they will expire and there will be no opportunity zones in the county.

  Item #5.4 was seeking to establish a new opportunity zone in the county. B.J. Simon, president of the West Chambers County Development Foundation, suggested that the commissioners pull the item off the agenda because Chambers County no longer fits the profile for an economically distressed area. The county poverty rate is about 18%, not 20% or above, and the median family income (MFI) in the designated areas is not less than or equal to 124% of the state/metro MFI. In other words, Chambers County is currently in a positive economic uptick. Simon stated that the application to be a designated opportunity zone would be denied. The Governor’s office determines eligibility.