Parts of city designated “Opportunity Zones”

April 25--HAVERHILL -- To attract private investment in support of economic development, two areas of the city have been designated as Opportunity Zones by the Gov. Charlie Baker and the federal government.

In announcing the program, Mayor James Fiorentini and state Rep. Andy Vargas said the majority of downtown and the Mount Washington neighborhood will be opened to Opportunity Funds investment.

The program provides tax incentives for investors who choose to invest in areas designated by the executive of each U.S. state.

Nate Robertson, Haverhill's assistant economic development director, said the department worked closely with Vargas' office as well as local community groups and regional agencies in developing the city's Opportunity Zones application.

Those partners included the Mt. Washington Alliance, Merrimack Valley Planning Commission, Greater Haverhill Foundation, MassDevelopment, and Community Action.

"Haverhill has attracted significant investment over the years, which has transformed our community for the better," Fiorentini said. "Haverhill is perfect for this program and this designation will help position us for continued investment and expanded opportunities for businesses and residents."

The Opportunity Zones program offers three tax incentives for investing in designated communities -- a temporary deferral of inclusion in taxable income for gains reinvested through an Opportunity Fund, a step-up in basis for capital gains reinvested, and a permanent exclusion from taxable income of capital gains from the Opportunity Fund, city officials said.

The award of the Opportunity Zone designation comes as a result of a bipartisan provision within the Congressional Tax Cut and Jobs Act of 2017 passed in late December.

"So many of our communities across the state and country are not given the same opportunities for growth as bigger cities, though they often possess the same potential," Vargas said. "The award of two Opportunity Zone designations means Haverhill can strengthen public-private sector relationships and re-invest in our local economy, which sends a message that we're ready to create economic opportunity in Haverhill."

The Opportunity Zones program is based on the bipartisan Investing in Opportunity Act. The legislation was developed in 2015 to address uneven economic growth patterns that have often left many American small to mid-sized communities behind.

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