One is downtown Kingsport.
The other is across from the Holston Army Ammunition Plant.
Both are known as “Opportunity Zones (OZs).”
OZs were created as part of the 2017 Tax Cuts and Jobs Act to encourage investment in low-income and rural areas.
Investors benefit three ways by investing their capital gains into a Qualified Opportunity Fund (QOF). The first benefit is a deferral of capital gains invested in a QOF. The second benefit is known as a “Step Up in Basis” which effectively reduces capital gains by 10 percent to 15 percent depending on how long the funds are in in QOF. The third benefit is a permanent exclusion from capital gains derived by investing in a QOF.
The feeling expressed at a recent meeting held at the Kingsport Chamber was that most OZs deals would be in real estate.
A non-profit consortium called TN1st is working with external investors, such as an investment fund from New York, to showcase Kingsport.
“Is Kingsport an attractive option for relocations?” asked TN1st Founder Jason Hudson. “Short answer is yes, Kingsport can be an attractive option based on what we offer throughout our area. A recent Wall Street Journal article highlighted Millennials are leaving the big cities for the suburbs. Consider why? There is a growing trend toward favoring a concept called ‘WalkUps.’ WalkUp stands for Walkable Urban Places. It means you can live, work, and play without long drives from place to place. Millennials are leaving the city because of high costs, but they do not want to abandon the convenience of WalkUps. Kingsport offers both walkability and excellent cost of living.”
Visit TN-OZ.com to sign up for a distribution list to stay informed about meetings and opportunities in the region. Download the Kingsport prospectus at http://KingsportTN.gov/city-services/economic-development/ and see what is being shared with the investment community. TN 1st is working with Kingsport Economic Development Board to capture interest throughout the community. Contact Hudson at [email protected] or 423-607-2300 to schedule a meeting or pitch your ideas.