The Federal Tax Cuts and Jobs Act of 2017 included a significant tax incentive to encourage private investment in certain targeted census tracts in the country. QOZ are qualified census tracts designated by the Governor of each state. Taxpayers with capital gains can invest those gains into equity funds that put the money to work in businesses in these designated areas of high poverty and low income. In exchange, the taxpayer receives deferred- or in some cases complete forgiveness- of the federal taxes due on any gains that investment produces. The regulations are still being finalized by the US Department of Treasury, but program guidance to date has been extremely flexible. Funds can be set up easily and investments can be self-certified by taxpayers.
More information here
Easton participates in the Local Economic Revitalization Tax Assistance or LERTA program, which is a 10-year tax deferral program. LERTA creates a graduated increase in tax payments on new construction and property rehabilitation for owners of commercial, industrial, and business properties located within designated zones in the City, including the Opportunity Zone. LERTA does require that property owners pay full land taxes, while taxes on improvements to the land grow incrementally over 10 years.
For More Information and a List of the LERTA properties click here
The Commonwealth of Pennsylvania, through its Department of Community & Economic Development, also offers numerous incentive financing programs, many of which are available for projects located in the City. For more information, please follow the link below: