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Washington,
D.C. –
Today,
Senators Tim
Scott
(R-SC) and Cory
Booker
(D-NJ), and
Congressmen Pat
Tiberi
(R-OH) and Ron
Kind
(D-WI) introduced
the Investing
in
Opportunity
Act to
help
revitalize
economically
distressed
communities
by
facilitating
new
incentives
for
investment
in
those
areas.
Currently,
more
than
50
million
Americans
live
in
a
distressed
community,
and American
investors
have
trillions
of dollars
of inactive capital
that,
if
reinvested,
could
be
used
as
an
important
new
source
for
catalyzing
growth
and
opportunity
in
areas
that
need
it
most.
This
bipartisan
legislation
would
create
an
innovative
framework
for
getting
this
capital
off
the
sidelines
to
jumpstart
a
new
generation
of
entrepreneurs
and
enterprise
in
economically
distressed
areas
of
the
country.
The
group
issued
the
following
joint
statement
"The
Unites
States
is
filled
with
the
world’s
brightest
innovators
and
an
unmatched
entrepreneurial
spirit.
However,
millions
of
Americans
live
in
communities
facing
the
crisis
of
closing
business,
lack
of
access
to
capital,
and
absent
entrepreneurship.
The Investing
in
Opportunity
Act is
a
new
approach
to
connecting
struggling
communities
with
the
private
investment
they
need
to
thrive.
By
empowering
investors
around
the
country
to
pool
their
resources
in
Opportunity
Funds,
we
can
dramatically
expand
access
to
the
capital
and
expertise
needed
to
start
and
grow
businesses,
hire
workers,
and
restore
economic
opportunity
in
struggling
communities.”
The Investing
in
Opportunity
Act
opens
the
door
to
private
capital
in
the
following
ways:
- Removes
a
barrier to
investment
through
a
temporary
capital
gains
deferral
in
exchange
for
reinvesting
in
distressed
communities
- Encourages
investors
from
across
the
nation
to pool
resources through
newly-created
“Opportunity
Funds”
--
established
specifically
for
making
investments
in
distressed
communities
- Concentrates
capital by
establishing
“Opportunity
Zones”
--
geographically
targeted
low-income
areas
that
will
be
designated
by
governors
- Provides
incentives
for
investors
to
make long-term
commitments to
these
communities
Research
by
the
Economic
Innovation
Group
recently
found
that more
than
50
million
Americans live
in
economically
distressed
communities,
which
suffer
from
a
lack
of
investment
and
business
growth.
The
Opportunity
Funds
created
by
this
legislation
will
provide
a
high-impact
source
for
funding
new
businesses,
developing
blighted
properties,
investing
in
local
infrastructure
projects,
financing
facility
construction
or
refurbishment,
and
a
host
of
other
activities
to
enhance
the
local
economic
ecosystem
and
create
new
opportunities
for
local
residents.
The
proposal
is
designed
to
be
very
low
cost
to
the
taxpayer,
with
no
tax
credits
or
public
sector
financing
involved.
“The
Economic
Innovation
Group
was
founded
to
develop
and
champion
policy
solutions
to
connect
communities
with
the
capital
they
desperately
need.
The
Investing
in
Opportunity
Act
provides
a
vital
new
pathway
for
investors
and
entrepreneurs
to
kickstart
economic
growth
in
distressed
areas
across
America,”
said
Sean
Parker,
founder
of
the
Economic
Innovation
Group.
“This
bipartisan
effort
is
a
model
for
how
policymakers
can
tackle
tough
issues
in
an
innovative
way.”
For
more
information
on
the Investing
in
Opportunity
Act, see
the
fact
sheet
here.
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