Washington, D.C.— Last week, Congressman Andy Barr (KY-06) introduced the Opportunity Zones Enhancement Act of 2023 with the aim of bolstering the effectiveness of Opportunity Zones in attracting more private investment and revitalizing struggling communities. This legislation aims to incentivize tax-paying banks to lend more to Opportunity Zone communities by offering a tax exemption.
Opportunity Zones were established with a clear objective: to utilize the tax code as a tool for encouraging private investment in communities that face economic challenges, to foster job creation, and to lift residents of poverty. Although opportunity zones have shown moderate success in channeling capital towards economically disadvantaged communities, further enhancements are necessary to ensure their full potential is realized. The Opportunity Zones Enhancement Act of 2023 aims to fill the gap and drive even more private capital into distressed neighborhoods, jump-starting job creation exactly where it is most needed.
"The Opportunity Zones Enhancement Act of 2023 incentivizes taxpaying banks to increase lending in Opportunity Zone communities. It not only lowers borrowing costs for businesses, empowering them to thrive, but also enables banks to fulfill their Community Reinvestment Act (CRA) requirements. By stimulating lending and investment in underserved areas, we drive progress and create opportunity” said Congressman Andy Barr. “This legislation aims to attract capital, foster growth, and uplift distressed communities through increased investment."
“ICBA thanks Rep. Andy Barr for introducing the Opportunity Zones Enhancement Act of 2023 to support lending in economically distressed communities,” ICBA President and CEO Rebeca Romero Rainey said. “This community bank-supported bill would reduce borrowing costs and build on tax incentives promoting equity investment in Opportunity Zones to help create jobs and lift living standards in the nation’s most economically distressed neighborhoods.”
“ABA is pleased to support Chairman Barr’s Opportunity Zones Enhancement Act of 2023, which will expand access to credit in underserved areas across the country. This legislation will enable banks of all sizes to better serve their customers and communities, particularly where investment and job creation are needed most, and we urge the House to advance it without delay,” said American Bankers Association President and CEO Rob Nichols.