FARGO - Several areas in the Fargo-Moorhead region have been designated as federal "opportunity zones" by the governors of North Dakota and Minnesota, officials in both states announced Friday, April 20.
These zones are Census tracts where poverty is high and where the federal government wants to encourage investments.
North Dakota Gov. Doug Burgum picked four tracts in Fargo, including downtown, other parts of north Fargo and the industrial park west of Interstate 29, according to the state.
Minnesota Gov. Mark Dayton picked one tract in downtown Moorhead, according to the state.
"While the details of this federal program are not expected to roll out until later this year, the City of Moorhead and Clay County are excited by the possibility of the Opportunity Zone program to be a catalyst for revitalization of underutilized properties in Moorhead's downtown neighborhood, bringing new businesses and housing opportunities to our community," the city said in a news release.
The incentive is part of the federal Tax Cuts and Jobs Act of 2017. Investors with unrealized gains in stock and mutual funds would benefit from a temporary tax deferral on gains invested in an opportunity zone, among other benefits, according to the state of North Dakota.
North Dakota's other opportunity zones are in Belcourt, Bismarck, Dunseith, Ellendale, Ft. Yates, Grafton, Grand Forks, Harvey, Jamestown, Linton, Mandaree, Minot, New Salem, Oberon, Rolla and Valley City.
Minnesota's other opportunity zones in west central Minnesota are in Detroit Lakes, Pelican Rapids, Alexandria and the Morris area.