April 25, 2017

Senator Hassan Cosponsors Bipartisan Legislation to Help Boost Economic Development and Job Creation in Economically Distressed Communities

Senator Hassan Cosponsors Bipartisan Legislation to Help Boost Economic Development and Job Creation in Economically Distressed Communities

Investing in Opportunity Act Incentivizes Private Sector Investment in Communities that Need it Most

WASHINGTON - Today, building on her efforts to support innovative businesses, expand middle class opportunity, and boost economic development, Senator Maggie Hassan (D-NH) announced that she is cosponsoring the Investing in Opportunity Act, a bipartisan bill to boost economic growth and job creation by creating new incentives for private sector investments in economically distressed communities.

The legislation, first introduced by Senators Tim Scott (R-SC) and Cory Booker (D-NJ), as well as Congressmen Pat Tiberi (R-OH) and Ron Kind (D-WI), offers a temporary capital gains tax deferral in exchange for reinvesting those dollars into economically distressed communities.

"The Investing in Opportunity Act is a common-sense, bipartisan measure that will help support job creation and boost economic growth in the communities that need it most," said Senator Maggie Hassan. "I look forward to continuing to work with members of both parties to pass this important legislation and to ensure that all hard-working Americans and Granite Staters have the opportunity to get ahead, and stay ahead."

"The American economy remains a world leader, but economic growth has been deeply uneven in the wake of the Great Recession," said Dr. Matthew Slaughter, Dean of the Tuck School of Business at Dartmouth. "Many communities -- even in prosperous states like New Hampshire -- have found themselves increasingly disconnected from the broader economic recovery. It is critical that policymakers support new ways to foster growth, dynamism, and opportunity for the millions of Americans living in such communities."

The Investing in Opportunity Act encourages investors of all types to move their capital off the sidelines and reinvest it in communities that need it most. The billfacilitates private investment in economically distressed areas in the following ways:

  • Removes barriers to investment through a temporary capital gains tax deferral in exchange for reinvesting them in distressed communities
  • Provides a new way for investors across the nation to pool resources through newly-created "Opportunity Funds," established specifically for making investments in distressed communities
  • Concentrates capital by establishing "Opportunity Zones," geographically targeted economically distressed areas designated by governors
  • Encourages investors to make long-term commitments to these communities by tying incentives to longevity

Other cosponsors include Senators Cory Gardner (R-CO), Gary Peters (D-MI), Roy Blunt (R-MO), Michael Bennet (D-CO), Lindsey Graham (R-SC), Chris Coons (D-DE), Shelley Moore Capito (R-WV), Kirsten Gillibrand (D-NY), Mark Warner (D-VA), and Todd Young (R-IN).

Recently, Senator Hassan introduced her first bill, the Reigniting Opportunity for Innovators (ROI) Act, which would help provide the student loan debt relief necessary for entrepreneurs to start up and grow innovative small businesses. The ROI Act provides additional incentives for startup companies in economically distressed areas by making founders and employees of small businesses in qualifying areas eligible for cancellation of up to $20,000 in student loans.

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