Feds approve Missouri for 131 special tax-break zones
COLUMBIA, Mo. (KMIZ)
The Treasury Department has approved 131 census tracts for designation as “Opportunity Zones,” where developers can earn special federal tax breaks.
The zones include four in Boone County, one in Cole County and others in several Mid-Missouri counties, according to a list posted to the Missouri Department of Economic Development’s website.
Gov. Mike Kehoe said in a news release that the zones will attract investment to the state.
Treasury allowed states to nominate up to 25% of their eligible census tracts, and Missouri was approved for all of the tracts it submitted, according to the Department of Economic Development. Local governments and organizations helped with the application process, according to the release.
The new designations will go into effect on Jan. 1 and stay in place for 10 years.
Census tracts must qualify as low-income or rural to qualify for the program. Low-income tracts are those where median family incomes are below 70% of the state or metro median and those places with a poverty rate of 25% or higher and a median family income below 125% of the state or metro median.
To qualify as rural, a tract must not be in an area with a population greater than 50,000.
The program gives tax breaks to investors in projects within the Opportunity Zones. The program’s stated goal is to attract business investment into economically distressed communities.
Opportunity Zones encourage investment in economically distressed communities by offering federal tax incentives for qualifying investments through Qualified Opportunity Funds. The new designations take effect January 1, 2027, and remain in place for 10 years.
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