If you don't work, live, or own property within an Opportunity Zone, you can still invest in a qualified opportunity fund and receive tax benefits. The fund can invest in as many qualified opportunity zones as it wishes, as long as it holds at least 90% of its assets in Opportunity Zone properties. The State of California actively promotes projects that promote the state plan to address climate change, such as those that promote the use of renewable energy sources, reduce harmful GHG emissions, and incorporate climate adaptation and resilience strategies. Government entities have long used tax-exempt municipal bonds to finance infrastructure projects, including sports stadiums. Investors buy bonds as a relatively risk-free means of earning interest, even though they generally pay lower interest rates than other investments.
The bonds are attractive due to their tax-free status. You can use the community geographic data tool & to first identify the eligible census districts in your area for Opportunity Funds to invest in. The California Department of Food and Agriculture (CDFA) has a Community Resilience Centers (CRC) program that develops local resilience in California communities by improving community facilities. The Community Defense Infrastructure (DCIP) pilot program is designed to address deficiencies in community infrastructure, such as support for a military installation, in order to improve the military value, the resilience of the facility, and the quality of life of military families. The Economic Development Administration (EDA) has an objective to invest in programs and organizations that have a clear understanding of local conditions and ways to create and connect people to good jobs, while ensuring that the benefits of the program are shared equally and in diverse geographies. With 879 Opportunity Zone census tracts in 57 counties, California offers a wide range of opportunities to align public and private investment to achieve community-level impact in areas of economic need. In the best-case scenario, local governments will continue to finance investments in supporting infrastructure, and Washington will continue to pay an interest subsidy for local government participation.
Proposition 26 is a coalition that supports generating tens of millions of dollars for schools, wildfire prevention and other state priorities. However, there is also a coalition that opposes the proposal because it would result in the loss of jobs and money for the local economy. Investors must substantially improve their investment in order to receive the benefits of investing in an opportunity zone. Eligible applicants must be located in California and include any subdivision of a local government, including cities, counties, special districts, evaluation districts, joint powers authorities, and not-for-profit organizations sponsored by a government entity. Local governments have an important role to play when it comes to investing in athletics in Northern California. By leveraging tax-exempt municipal bonds and other public financing tools such as Opportunity Funds and Proposition 26, local governments can help create jobs and spur economic development while also providing much needed support for athletics programs.
Through these investments, local governments can help ensure that athletes have access to safe facilities and equipment while also helping to create vibrant communities with strong economies.