February 02, 2017

New Democrat Coalition Chair Emeritus Introduces Bill to Boost Economic Growth in Rural and Under-served Communities

New Dem Chair Emeritus Congressman Ron Kind (WI-03) introduced the Investing in Opportunity Act, which will boost economic growth in communities that have been left behind by incentivizing more private sector investment. The New Democrat Coalition is committed to growing the economy and increasing opportunities for all Americans. New Democrats support solutions to boost private sector investment to help communities across the country grow and thrive so that all Americans feel they are getting a fair shot at economic opportunities. New Dem Chair Jim Himes and Vice-Chairs Suzan DelBene, Rep. Derek Kilmer, Rep. Jared Polis, and Terri Sewell along with New Dem Reps. Congressman Seth Moulton, Pete Aguilar, and Jim Cooper are original co-sponsors.

“We cannot neglect Americans who live in distressed communities and don’t have access to economic opportunities that large metropolitan areas benefit from in the 21st century economy. Congress must do more to ensure America’s most vulnerable populations get access to the economic opportunities they deserve. This legislation is a sustainable way to invest in the community by incentivizing new job growth in areas of our country that have faced economic challenges. With private sector investment, in partnership with government we can create good jobs in every community, benefitting our nation’s economy,” said New Democrat Coalition Chair Jim Himes.

“Economic growth over the past decade has focused on the East Coast and the West Coat and left the Heartland behind. It is time we take steps to fix this problem. By encouraging private investment to come to areas it may not normally the Investing in Opportunity Act levels the playing field for communities who need a leg-up and helps create good-paying jobs where we need them the most,” said New Democrat Coalition Chair EmeritusCongressman Ron Kind.

The Investing in Opportunity Act is authored by Representatives Rep. Pat Tiberi & Congressman Ron Kind and Senators Tim Scott & Cory Booker. The bill is designed to systematically attract new sources of capital to fund a new generation of entrepreneurs and businesses in areas across the country that are ripe for investment and hungry for opportunity.

This legislation removes barriers and encourages new investment by:

Allowing investors to temporarily defer capital gains recognition if they reinvest into an “Opportunity Zone.”
Allowing governors to lead the designation of local Opportunity Zones comprised of up to 25 percent of the “low-income community” census tracts in each state.
Establishing “Opportunity Funds,” a new category of investment funds required to invest specifically in Opportunity Zones.