Opportunity Zone Program
Created as part of the Tax Cut and Jobs Act of 2017, the Opportunity Zones Program is a new approach to encourage private-investment in historically low-income areas around the country.
These investments come in the form of U.S. Treasury Certified Opportunity Funds. Investors with capital gains tax liabilities will be able to make equity investments in businesses and real estate. Individuals do not need to live in a Qualified Opportunity Zone to invest in these funds. Tax benefits for this program include:
- A temporary deferral of inclusion in taxable income for capital gains reinvested in an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is disposed of or December 31, 2026.
- A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis is increased by 10% if the investment in the Opportunity Fund is held by the taxpayer for at least 5 years and by an additional 5% if held for at least 7 years, thereby excluding up to 15% of the original gain from taxation.
- A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years. This exclusion only applies to gains accrued after an investment in an Opportunity Fund.
In the Town of Bristol, Census Tract 307 is one of the 25 designated areas in Rhode Island nominated by Governor Gina M. Raimondo for this program. Within Census Tract 307 is Bristol's Historic Downtown and Wood Street neighborhood.
Tax Stabilization Ordinance
The Town of Bristol Tax Stabilization Ordinance was created to encourage new and improved commercial and manufacturing developments in the Town of Bristol. The phase-in of taxes will provide a benefit to the Town by reason of the willingness of the commercial or manufacturing business to:
- locate in town; or
- expand facilities with an increase in employment, or
- retain or expand facilities and not reduce the workforce; or
- improve facilities that will result in long-term economic benefits to the town.
Projects valued at $250,000-$499,999 will be considered for a five-year phase-in of taxes as follows: or greater; and, substantial improvements/rehabilitations costing more than 50% of the assessed value of the existing building or structure.
Five Year Program
Percent Exempt From Taxation
Projects valued at $500,000 or higher will be considered for either a five-year phase-in of taxes (as seen above) or ten-year phase-in of taxes (as seen below).
Ten Year Program
Percent Exempt From Taxation
*This incentive is granted at the sole discretion of the Bristol Town Council.
Other Rhode Island Tax Credits and Grants
The State of Rhode Island provides a wide range of resources to help businesses open and expand their operations. Click below to learn more.