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Tax incentives approved for investors interested in low-income areas in York City
Investors will now receive tax incentives to fund development in five low-income areas in York City, the city announced Friday, June 15.
The Pennsylvania Department of Community and Economic Development announced that the U.S. Department of Treasury approved the Qualified Opportunity Zone designations of the five areas, called census tracts, on Thursday, June 14.
Census tracts are "small, relatively permanent statistical subdivisions of a county or equivalent entity that are updated by local participants prior to each decennial census," according to the U.S. Census Bureau.
The zones cover five of the 16 census tracts in York City.
The tax incentives come from the 2017 Federal Tax Cuts and Jobs Act, which President Donald Trump signed into law in December.
The Qualified Opportunity Zone designation provides a tool for promoting long-term investment in low-income communities. Through the program, investors receive tax benefits for investing in low-income community businesses, real estate and other ventures, the release states.
The incentives include deferral, reduction and potential elimination of certain federal capital gains taxes.
"The designation of these Opportunity Zones is a huge step in garnering the investment that is needed to bring back significant amounts of walkable jobs into our neighborhoods," said York City Mayor Michael Helfrich in a news release. “All residents may see an increase in available jobs near their homes.”
An additional 295 census tracts were designated Qualified Opportunity Zones statewide, the release adds.
“Approval of our nominated tracts is an important step in the process of bringing critical investment and development to these areas," Gov. Tom Wolf said in a statement. "Designation as an Opportunity Zone is one piece of the puzzle that can help many of our distressed communities across the commonwealth.”
Descriptions and photos of the city's Qualified Opportunity Zones are below, courtesy of the York City mayor's office:
- Census Tract No. 3: Multiple near-block-sized vacant areas in northeast York City.
- Census Tract No. 6: A highly industrial and residential mixed community neighborhood on the east side of York City.
- Census Tract No. 10: A key corridor connecting York College to the city along the York County Heritage Rail Trail and other north-south arterial roadways.
- Census Tract No. 12: Includes western commercial corridor along West Market Street, the expansive Goodridge Industrial Park and multiple other large industrial buildings with rail access.
- Census Tract No. 16: A stretch along the northern part of York City along the Codorus corridor from Loucks Mill Road to Salem Square.