The zones have improved communities and helped homeless Philadelphians in Trump’s first 100 days of this presidential term.
The city of Philadelphia is home to 82 opportunity zones. These zones help almost one in five of the city’s residents that are struggling with homelessness.
Investments in opportunity zones have benefited more than 8,700 communities and one million Americans living in poverty across the nation.
In the Tax Cuts and Jobs Act of 2017, opportunity zones were created as a way to help struggling communities.
Opportunity zones use tax incentives to draw long-term investment to parts of the country that struggle with high poverty rates and sluggish job and business growth.
The idea was first developed in a 2015 paper by Kevin Hassett and Jared Bernstein. Hasset went on to lead President Trump’s Council of Economic Advisers during his first term, while Bernstein later held the same position under President Biden.
Opportunity zones became a bipartisan part of the Tax Cuts and Jobs Act, which was President Trump’s first major legislative victory during his first term.
The zones are available to anyone with investment income. They allow the deferral of, or in some cases reduction of, capital gains taxes on that income. Taxes on the investment are wiped out if it is held for at least 10 years.
In a recent letter to the editor, U.S. Housing and Urban Development Secretary Scott Turner highlighted the importance of these opportunity zones to the Philadelphia community in Pennsylvania.
He wrote, “Philadelphia is home to 82 Opportunity Zones, which help almost one in five of the city’s residents, and account for roughly 200 revitalization projects. Many Philadelphians suffer from homelessness – but Opportunity Zones have helped distressed Americans find housing throughout President Trump’s first 100 days in office.”
He continued with an example of Philly opportunity zones, “In March, I had the privilege of seeing firsthand how these projects are benefiting Philadelphians when I toured One River Marina and The Battery – two Opportunity Zone developments that will bring new life to the city. For 40 years, the Battery and surrounding neighborhoods fell into disrepair. Opportunity Zones opened the neighborhoods up to $154 million in investments and transformed the forgotten industrial space into a thriving community on the Delaware River.”
Mr. Turner concluded his letter by referencing his plans as the Secretary of HUD.
“Homeownership is a core part of the American Dream, and the Trump administration has been working hard in the first 100 days to ensure all Americans can achieve that dream. At HUD, we’re excited to continue working diligently to make sure all Americans prosper under this new Golden Age.”
