Leggett Hails “Opportunity Zone” for Economic Development in Germantown and Elsewhere in MoCo
The U.S. Treasury Department has approved 14 designated areas of land in Montgomery County, including a large portion of Germantown, 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.”
The Germantown Opportunity Zone is centered around the Montgomery College campus and includes the area of Holy Cross Germantown Hospital, from Middlebrook Road west to Boland Farm Road, and I-270 north to MD-355/Frederick Road.
Created under President Trump’s 2017 Tax Cuts and Jobs Act, 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.
Montgomery County 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