Last April, Governor Eric Holcomb submitted nominations to the U.S. Department of Treasury for seven Census tracts in St Joseph County to be classified as opportunity zones. These tracts include areas on South Bend's south, southwest and east sides, as well as sections of the Ardmore Neighborhood and central Mishawaka. All seven of the zones were approved.
An opportunity zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as opportunity zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service.
The new zones incentivize development by allowing investors to defer capital gains taxes by reinvesting in one of the low-income areas. Opportunity zones represent another economic development tool to spur growth and job creation.
Recently, the City of South Bend released its Opportunity Zone Prospectus with more detailed information about the city and the opportunity zones.