Mapp nominated 14 Virgin Islands neighborhoods for federal Opportunity Zone tax breaks

Gov. Kenneth E. Mapp nominated 14 neighborhoods on St. Thomas and St. Croix on March 29, 2018, for designation as Qualified Opportunity Zones under the Tax Cuts and Jobs Act of 2017, according to Government House.

The nominations covered 14 low-income census tracts and were subject to approval by the U.S. Department of the Treasury. Government House said the nominated areas included Christiansted and the western end of St. Croix, as well as most of the southern half of St. Thomas.

The federal program was created to encourage investment in low-income communities by allowing investors who reinvest capital gains in qualifying property or businesses in designated Opportunity Zones to defer and reduce those taxes. Government House said eligible investors could defer federal capital gains taxes for up to seven years, reduce the taxable gain by as much as 15%, and avoid federal capital gains taxes on additional appreciation in the new investment.

Government House also said the original proposal did not include the Virgin Islands or other U.S. territories, and that Sen. Tim Scott of South Carolina later agreed to expand eligibility to low-income communities in the territories after meeting with Mapp in 2017.

Official source: https://www.vi.gov/virgin-islands-communities-nominated-for-federal-tax-breaks-to-encourage-investment/