‘Opportunity zones’ in new tax code could spur area growth

In addition to airport, investors get another reason to check out Everett and surrounding county.

Tom Hoban

Tom Hoban

A component of federal tax reform passed last year includes newly designated “opportunity zones” designed to attract investment into areas of blight by deferring or completely waiving capital gains taxes — effectively expanding on the Section 1031 exchange rules that allow for deferral of capital gains inside of real estate.

The program operates somewhat like the well-known EB5 program, which uses access to a green card and a fast track to U.S. citizenship as bait to attract foreign capital. It differs mostly in its focus on attracting domestic U.S. capital into U.S. cities where it’s most needed. An October report about how the program will operate seems to have brought enough clarity to build momentum.

One key characteristic of opportunity zones is that 20 percent of the population must be under the poverty level and the median income may not exceed 80 percent of the metro or state level. The tax benefits extend all the way to 2028, fitting a longer-term real estate or business investment profile. Details of the program can be found here. An interactive map shows much of Snohomish County qualifying, with the entirety of downtown Everett included.

The Everett and Snohomish County real estate markets are well positioned these days. Attractive and somewhat undiscovered by outside investors is Everett’s downtown, where Funko recently found a home and other businesses spotting access to commercial passenger service at Paine Field are now sniffing aroundfor opportunities. Layering on another incentive in the form of the new opportunity zones is perfectly timed as it greases the skids for investors to respond to new demand right when it’s taking a look.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Lynnwood
New Jersey company acquires Lynnwood Land Rover dealership

Land Rover Seattle, now Land Rover Lynnwood, has been purchased by Holman, a 100-year-old company.

Szabella Psaztor is an Emerging Leader. (Olivia Vanni / The Herald)
Szabella Pasztor: Change begins at a grassroots level

As development director at Farmer Frog, Pasztor supports social justice, equity and community empowerment.

Owner and founder of Moe's Coffee in Arlington Kaitlyn Davis poses for a photo at the Everett Herald on March 22, 2024 in Everett, Washington. (Annie Barker / The Herald)
Kaitlyn Davis: Bringing economic vitality to Arlington

More than just coffee, Davis has created community gathering spaces where all can feel welcome.

Simreet Dhaliwal is an Emerging Leader. (Olivia Vanni / The Herald)
Simreet Dhaliwal: A deep-seated commitment to justice

The Snohomish County tourism and economic specialist is determined to steer change and make a meaningful impact.

Emerging Leader John Michael Graves. (Ryan Berry / The Herald)
John Michael Graves: Champion for diversity and inclusion

Graves leads training sessions on Israel, Jewish history and the Holocaust and identifying antisemitic hate crimes.

Gracelynn Shibayama, the events coordinator at the Edmonds Center for the Arts, is an Emerging Leader. (Olivia Vanni / The Herald)
Gracelynn Shibayama: Connecting people through the arts and culture

The Edmonds Center for the Arts coordinator strives to create a more connected and empathetic community.

Eric Jimenez, a supervisor at Cocoon House, is an Emerging Leader. (Olivia Vanni / The Herald)
Eric Jimenez: Team player and advocate for youth

As an advocate for the Latino community, sharing and preserving its traditions is central to Jimenez’ identity.

Nathanael Engen, founder of Black Forest Mushrooms, an Everett gourmet mushroom growing operation is an Emerging Leader. (Olivia Vanni / The Herald)
Nathanael Engen: Growing and sharing gourmet mushrooms

More than just providing nutritious food, the owner of Black Forest Mushrooms aims to uplift and educate the community.

Molbak's Garden + Home in Woodinville, Washington closed on Jan. 28 2024. (Photo courtesy of Molbak's)
Molbak’s, former Woodinville garden store, hopes for a comeback

Molbak’s wants to create a “hub” for retailers and community groups at its former Woodinville store. But first it must raise $2.5 million.

DJ Lockwood, a Unit Director at the Arlington Boys & Girls Club, is an Emerging Leader. (Olivia Vanni / The Herald)
DJ Lockwood: Helping the community care for its kids

As director of the Arlington Boys & Girls Club, Lockwood has extended the club’s programs to more locations and more kids.

Alex Tadio, the admissions director at WSU Everett, is an Emerging Leader. (Olivia Vanni / The Herald)
Alex Tadio: A passion for education and equality

As admissions director at WSU Everett, he hopes to give more local students the chance to attend college.

Dr. Baljinder Gill and Lavleen Samra-Gill are the recipients of a new Emerging Business award. Together they run Symmetria Integrative Medical. (Olivia Vanni / The Herald)
Emerging Business: The new category honors Symmetria Integrative Medical

Run by a husband and wife team, the chiropractic and rehabilitation clinic has locations in Arlington, Marysville and Lake Stevens.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.