Trump’s real estate tax credit also saves investors money on city and state taxes in New York, to the dismay of some Democrats and interest groups.
More than two dozen groups are now trying to cancel New York tax breaks accumulated at the federal level Zone of opportunities program.
Unions, including U.S. teachers and communications professionals in New York, and nonprofits such as Reinvent Albany, the Institute for Fiscal Policy, and the Coalition for Economic Justice on Monday approved measures to separate New York tax codes from the program: Act on the elimination of tax relief in the zone of opportunities sponsored by Queens State Senator Michael Gianaris.
Opportunity zones have been created by the user Republican tax correction in 2017 and let real estate developers and investors defer or eliminate capital gains taxes by financing projects in any of the 8,700 zones across the country.
They can also save on capital gains taxes paid to New York, where the tax law closely follows federal law, as is the case in most states.
If the law passes, New York would join North Carolina, California, Massachusetts and Mississippi to separate state tax codes from the Opportunity Zone program.
The three-year program aims to encourage low-income communities, but critics say the only thing it does for sure is to save developers money. Opportunity zones have been identified for a number of areas where development has already taken place, and critics say they are bringing benefits to projects that would happen anyway.
For example, the census on Manhattan’s Far West Side, where luxury development which have grown in recent years have been designated as the Zone of Opportunity. Such was the line of Long Island City, which was on the rise at the time.
“Subsidies in the opportunity zone cannot be justified at best, so there is no reason why New York should continue to give up expensive tax dollars during the historic budget crisis,” opponents said in a statement.
The report cites a report from the Citizens Budget Commission, which states that the program could cost New York City and cost up to $ 31 million and $ 63 million a year, respectively. (Amounts are approximately $ 1 for every $ 3,000 in the city and state budgets.)
Other trade unions that supported the memorandum include the 1199SEIU Healthcare Union, the Professional Staff Congress / CUNY, the UFCW Local 1500 Food Union and the Retail, Wholesale and Department Store.
In addition, the memorandum was supported by non-profit organizations such as Nobody Leaves Mid-Hudson, Good Jobs First, the Institute for Taxation and Economic Policy, and the Northwest Bronx Community & Clergy Coalition.
President Joe Biden has said he intends to maintain zones of opportunity but add transparency measures to see if they are really helping low-income people.