The federal Qualified Opportunity Zone Program was established through the 2017 “Tax Cuts and Jobs Act” to encourage economic growth in underserved communities through tax benefits to investors. The Program is designed to incentivize patient capital investments in low-income communities. All of the underlying incentives relate to the tax treatment of capital gains and are tied to the longevity of an investor’s stake in a qualified Opportunity Fund, providing the most upside to those who hold their investment for 10 years or more. Chester has two (2) approved Opportunity Zones that include the Waterfront and the Downtown.
Detailed information please refer to the CEDA website.
The City of Chester has adopted a provision under the Local Economic Revitalization Tax Assistance Act (LERTA) to encourage the revitalization of deteriorated properties in portions of the City of Chester. Under the LERTA program, a company interested in expanding or constructing a new facility can defer the increase in real estate taxes on the value of the improvements over a period of ten (10) years. Under the program, real estate taxes on the improvements are phased in at a rate of ten percent (10%) per year until the full assessment is reached in year ten (10). An application must be submitted to the Office of the City Tax Assessor within fifteen (15) days from the time a building permit is issued.