Sunnyside has been named as one of Morgantown’s “Opportunity Zones”. Over the past decade, Sunnyside has experienced an increase in the scale and density of new housing, which has made the neighborhood more attractive and marketable. However, even with this new construction, Sunnyside is home to some of Morgantown’s oldest housing units and several old factories and industrial sites, which can impact redevelopment.
As a part of the Tax Cuts and Jobs Act, the “Investing in Opportunity Act” is a bipartisan provision to bolster economically depressed areas across the United States by offering deferred taxes and then significant capital gains tax breaks to those willing to sustain investment in low-income areas.
The Opportunity Zone program seeks to provide incentives for a broad array of investors to pool and deploy their resources in “Opportunity Zones”. The intent is to significantly increase the scale of private investments in vulnerable and underserved areas at a low risk to investors. As the incentives are linked to the duration of the investor’s commitment to the Opportunity Zone rather than an upfront subsidy, the program provides an incentive for investors to reinvest their capital gains in Opportunity Funds to provide patient capital for low-income communities. Experts estimated as much as $6.1 trillion in unrealized capital gains resources that may be available to support this Opportunity Zone market.
For more in-depth information on Opportunity Zones, please click here.