JOPLIN, Mo. — The IRS is extending the deadline for Opportunity Zone investment funds.
This means investors have more time to put money into opportunity zones. Parts of Joplin are in an Opportunity Zone, which means there’s an incentive for people to buy properties and bring businesses to Joplin.
Derek Smith, Partner With BKD LLP, said, “The whole key behind Opportunity Zones was to incentivize investments in certain areas that congress and the government felt like were underserved or under invested in so this was a way that they can incentivize folks that have money to invest.”
Joplin has one Opportunity Zone that runs from Turkey Creek to Seventh Street and Main Street to Range Line. The Chamber of Commerce says they are seeing a jump in investments.
Toby Teeter, President of Joplin Area Chamber Of Commerce, said, “What has changed in the last couple of years is that people are starting to respond to them. Realtors are understanding them better and are encouraging investors to acquire these properties and make improvements to the properties and put more properties back into service.”
He says investing in opportunity zones creates a ripple effect.
“When a property is improved inside an Opportunity Zone obviously, one, it creates tax revenue. That value of the property is enhanced so there’s more property taxes so there’s more investment that cycles through. And it reaches all of us we get better streets, better law enforcement and so on.”
Because of the pandemic congress and the IRS extended key Opportunity Zone investment dates from December 2020 to march 31, 2021. This gives investors more time to meet the criteria of opportunity zones and helps inject money back into cities.
“Its giving businesses more time to execute on their plan of investment and its also giving them more time to get their business plan off the ground and running,” said Smith
The Joplin Area Chamber of Commerce says Joplin is doing well during the pandemic nearing the three percent unemployment range. The chamber say the city is adding 500 to 600 new jobs from expansions and business attraction efforts.