Paris, Tenn.–Newly-elected State Representative Bruce Griffey Wednesday met with officials from the Tennessee Department of Economic and Community Development (TDEC) on how ‘opportunity zones’ in Benton, Henry and Stewart Counties could be utilized to attract investment and increase job opportunities for the district.
In a press release, Griffey said, “The Tax Cuts and Jobs Act for which the Trump Administration advocated last year allow investors to re-invest their capital gains into ‘Qualified Opportunity Funds’ in exchange for three types of federal tax benefits: (1) temporary deferral, (2) a step-up in basis and (3) permanent exclusion on capital gains earned after the initial investment.”
“Qualified Opportunity Funds” can be used to invest in industrial development and retail development, among other things, in low-income communities, Griffey said.
“Three tracts – one in each of the three counties in our district – have been designated as an ‘Opportunity Zone’ for the investment of ‘Qualified Opportunity Funds’, he said. The ‘Opportunity Zone’ in Henry County is located in the northeast part of the county by the lake at the Stewart County line. In Stewart County, the ‘Opportunity Zone’ is located in the southeast portion of the county by the Houston County line. In Benton County, the ‘Opportunity Zone’ has been designated in the southern portion of the county at the Decatur County line along the Interstate 40 corridor.
“In short,” Griffey said, “if an investor, which can be an individual, a corporation, a partnership or a trust, wants to invest capital gains in one of these three zones for industrial development or retail development or other business development, then those invested capital gains will be exempt from federal taxation through the end of 2026 or when the investment is sold – whichever occurs first. Additionally, if the investment of the capital gains is held for 10 years, then any gains from it will be permanently exempt from federal taxation. Moreover, after seven years, the initial investment will be discounted by up to 15% for tax purposes.”
With three different ‘Opportunity Zones’ designated by the state in the district which represents Henry, Benton and Stewart counties, Griffey said, “this is a newly created, advantageous financial benefit that we can offer to attract business and industry to our area, and there will be businesses looking for zones into which to invest. I’m very optimistic about how ‘Opportunity Funds’ can strengthen our district’s economy, and I am intent on continuing to do everything I possibly can to find ways to get more industry and jobs here.”
Attached is a map reflecting counties in District 75 with shaded areas reflecting the “Opportunity Zones”.