Opportunity Zones are a federal tax incentive intended to draw private investment to distressed neighborhoods. A year ago it was one of the hottest ideas around. The state created a website and appointed a coordinator of the program. A year later, the program is, as U.S. Rep. Jim Himes, D-4th District, said in a recent telephone interview, “in desperate need of tweaking.” One of its incentives has lapsed, it’s been touched by scandal in some parts of the country, it has no public reporting requirement and may be benefiting rich investors more than distressed communities. The Urban Institute issued a report in June critical of Opportunity Zones. The report found that while there have been “compelling examples of community benefit, the incentive as a whole is not living up to its economic and community development goals.” But for all of the negative issues, the evidence shows Opportunity Zones still can help struggling communities. A smattering of projects got underway in Connecticut Opportunity Zones before and during the pandemic. New London has three.
