FORT PAYNE– A new federal Opportunity Zone in Fort Payne will take effect Jan. 1, 2027. The designation gives qualifying investors a way to access federal tax incentives for business and real estate projects.
The U.S. Department of the Treasury designated DeKalb County Census Tract 9611 as a rural Qualified Opportunity Zone. Fort Payne’s designation lasts 10 years. Treasury designation list
After reviewing eligible census tracts across the county, the DeKalb County Economic Development Authority ranked Tract 9611 first. The Alabama Department of Economic and Community Affairs then included it in the state’s submission to Treasury. Alabama Opportunity Zones program
Where is the Zone?
The zone generally covers the northern Highway 35 corridor, historic downtown, Gault Avenue, Airport Road, and the Exit 218 area. It also includes city-owned redevelopment property along 2nd Street, where the city has worked with the U.S. Environmental Protection Agency on planning.
Investment?
“The designation itself does not create investment,” said Dr. Brett Johnson, executive director of the DeKalb County EDA. Johnson said the authority plans to identify projects, explain the program to property owners, and connect developers with investors.
Investors may qualify for federal capital gains tax benefits by investing through a Qualified Opportunity Fund. Because Treasury classified the tract as rural, qualifying investments may also be eligible for enhanced benefits. IRS announcement
What kind of Projects?
Potential projects include industrial and distribution facilities, former hosiery mill redevelopment, downtown mixed-use projects, workforce housing, and hotels. Where eligible, projects could also combine Opportunity Zone financing with historic rehabilitation tax credits, local incentives, or tax abatements.
Over that period, the authority also plans to work with employers, lenders, real estate professionals, and advisers.
Property owners, businesses, developers, and investors can contact the DeKalb County EDA at 256-845-7957. The authority advises consulting tax and legal professionals to confirm eligibility for a specific property or investment. DeKalb County Economic Development Authority
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