Cummings Announces Designated Opportunity Zones In Baltimore City and Baltimore County
Washington, D.C. (May 29, 2018) — Today, Congressman Elijah E. Cummings (D-MD) received confirmation from the Treasury Department that the census tracts nominated by Governor Larry Hogan were designated as Opportunity Zones. These include 42 census tracts in Baltimore City and 10 tracts in Baltimore County.
“I’m excited to see what the designation of these Opportunity Zones will do for Baltimore City and Baltimore County communities,” Cummings said. “I believe that these designations can help lift our poorest residents out of poverty and into the middle class.”
The Tax Cuts and Jobs Act that was passed last year created a new tax incentive for investment in businesses located in distressed communities. Investors may invest directly or indirectly in businesses located in Qualified Opportunity Zones – census tracts which generally have a poverty rate of at least 20 percent – and they will receive a tax benefit for all gains made from such investments. The Opportunity Zone statute empowered the chief executive officers of states and U.S. possessions to select among eligible population census tracts in their jurisdictions and to nominate their selections for designation as Qualified Opportunity Zones. The Community Development Financial Institutions Fund assists IRS in confirming the Eligibility of the nominated tracts and IRS then certifies the nominations and designates the tract so identified.
On April 23, 2018, Cummings sent a letter to Treasury Secretary Mnuchin in support of the State of Maryland’s request to designate the 52 census tracts as Opportunity Zones under the new Opportunity Zone Program. He also wrote a letter to Governor Hogan in March requesting he designate Opportunity Zones in the greater Baltimore region.