Opportunity Zones encourage economic investment
The U.S. Treasury Department has approved 153 new Opportunity Zones in Virginia, including one in Bailey’s Crossroads and one in Seven Corners.
“These designations will support new investment, create jobs, and drive economic growth across the Commonwealth by empowering these communities to leverage federal incentives,” said Virginia Gov. Abigail Spanberger on Nov. 6.
The Seven Corners Opportunity Zone (Census Tract 51059451400) is bordered by Arlington Boulevard, Wilson Boulevard, and the Arlington County Line.
The Opportunity Zone in Bailey’s Crossroads (Census Tract 51013102200) is generally between Leesburg Pike, S. George Mason Drive, Holmes Run, and Magnolia Lane.
Opportunity Zones were established by the 2017 Tax Cuts and Jobs Act to provide tax incentives to encourage long-term private investment in lower-income urban, suburban, and rural census tracts.
Taxpayers who invest in Opportunity Zones can get tax deferral, tax reduction through long-term investment, and exclusion of certain capital gains taxes.
All of the Opportunity Zones recommended by Spanberger were approved by the federal government.
Related story: Economic pilot program can spur revitalization of Bailey’s Crossroads
In June, the governor established four investment focus areas to guide the selection of Opportunity Zones – ensuring a locality’s readiness for investment in housing development, downtown revitalization, business-ready investment, and regional asset development. Localities ranked their eligible tracts and submitted detailed information on development activity, zoning alignment, community support, feasibility, and investor interest.
The Virginia Department of Housing and Community Development and the Virginia Economic Development Partnership jointly led the review. They surveyed all localities with one or more eligible tracts, analyzed economic opportunities, and gathered stakeholder input from local governments, developers, housing partners, regional organizations, and business groups.
The designated Opportunity Zones will take effect on Jan. 1, 2027.
The additional Opportunity Zones bring the total number in Virginia to 212. Census Tract 51059451502 in Bailey’s Crossroads – between Leesburg Pike, Glen Carlin Road, and Carlin Springs Road – had previously been approved.