Nestled between Overtown and Allapattah, CIC’s Miami office is located in what’s known as an Opportunity Zone, an economically-distressed community where investments into area businesses may be eligible for tax breaks. So, CIC Miami’s clients, investors, and neighbors may be eligible for tax incentives to benefit the local economy and create jobs.
CIC recognizes the importance of Opportunity Zones and how they must be managed to maximize community benefits. Opportunity Zones are often viewed as avenues for new real estate projects, but they can be so much more — tools for holistic and inclusive community development and wealth creation for the whole neighborhood. Cities across the country are creating structures like these to incentivize and guide economic development in the areas that need it most, and Miami has an opportunity to do the same. That’s why CIC has been joining conversations with many stakeholders across our community — including developers, entrepreneurs, and advocacy and nonprofit groups — to advocate for a closer look at how Opportunity Zones can be best used to build a better Miami.
Opportunity Zones aim to promote long-term investment into areas that have had difficulty bouncing back after the Great Recession, specifically with regard to job growth, business growth, and poverty. Because of the provision, governors can designate up to 25 percent of their state’s low-income census tracts as Opportunity Zones.
In order to boost economic development in these communities, the government offers tax cuts for investors who create or support “Opportunity Funds” — basically, seed funds for new companies, for expansions of existing companies, or for real estate development located in the area.
The program allows investors to roll unrealized capital gains from other investments into these Opportunity Funds, deferring federal taxes in the process. To encourage long-term investment, the government will also waive taxes on Opportunity Fund profits if the investment is held for 10 years or more.
According to the Wall Street Journal, the program “aims to drive hundreds of billions of private dollars into more than 8,700 designated zones covering nearly 12% of the U.S. and 35 million people.” There are 67 designated Opportunity Zones within Miami-Dade county. Essentially, businesses located in the Opportunity Zones could receive some incredible investments, thanks to these tax incentives.
Unlike other co-working spaces in Miami, that are often found in well-established neighborhoods like South Beach or Brickell, CIC is located in one of these Opportunity Zones. which means its clients (and neighbors!) may be eligible to receive Opportunity Fund investments, provided they meet the other requirements. (“Sin businesses,” like gambling halls or bars, for example, aren’t eligible.) If you’re interested in learning more about the program or its requirements, and to see where Miami’s Opportunity Zones are located, you can check out this interactive map.
With Public Policy as one of its core pillars, CIC wants to promote economic development through entrepreneurship, and the Opportunity Zone program can be an effective way to make it happen. This new program can help Miami achieve more holistic community development and wealth creation, advancing not only the growth of CIC clients, but the acceleration of inclusive and responsible entrepreneurship, innovation, and community development.
CIC is holding their second anniversary celebration to showcase its impact and mission, focusing on several themes they feel are important for our city, like opportunity zones. Come celebrate, learn and engage around the future of our city, and get to know your role in Miami’s growth.