We need you to take a stand and oppose HOUSE BILL 4010, which would effectively eliminate all state incentives for Opportunity Zones. We view this as our biggest threat to date.
OSCC joined cities and other economic development proponents on Wednesday night to testify in opposition to HB 4010, which would disconnect Oregon from the federal Opportunity Zone tax incentive that included in the federal 'Tax Cut and Jobs Act' passed by Congress in 2017. We've heard from many of our local chambers about the importance of maintaining Opportunity Zones as a tool to support local economic development.
What are the risks of disconnecting? Disconnecting will create added complexity and confusion, particularly for the Oregon investor who is willing to focus on smaller and rural community projects in Oregon. The added complexity will also make it more difficult for local and regional agencies to establish programs that leverage the incentive to achieve broadly targeted goals. Disconnecting from the federal OZ incentive will not eliminate OZ’s in Oregon. Disconnection only changes the eligibility of Oregon tax payers to realize the capital gains incentives in future years for investments made in Oregon. Out of state tax payers or multi statecorporations can still invest in, and receive tax benefits from, Oregon’s OZ’s and Oregon investors can invest in out-of-state funds or properties in OZ’s in other states. How will disconnect affect local Oregon investors and taxpayers? As noted by the Legislative Revenue Office “Bottom line, only Oregon taxpayers are affected by a disconnect.”1 Disconnecting from the federal code will penalize Oregon investors. HB 4010 would treat Oregon investors differently, and will not give Oregonians investing in their own communities the same benefits as those who invest elsewhere, or out-of-state investors spending the same money in our communities. At-best, this will lead to out-of-state ownership and control of Oregon assets at the expense of local ownership and control. At worst, disconnecting Oregon from the federal tax code means no investment in our neediest areas. Disconnection may simply discourage Oregon taxpayers from making local investments in Oregon companies and properties. Any potential benefit of OZ’s will be lost, and place Oregon as the national outlier. Whether or not OZ’s incentivize investment that may not otherwise occur is an open question, but there is no question that Oregon’s disconnect can only disincentivize local investment by Oregon taxpayers.
If you want to preserve Opportunity Zones in your community, now is the time to speak up and send your testimony as soon as possible to: