by Josh Clayborne

Neglected neighborhoods throughout Indiana will soon have a new tool to attract investors.

More than 150 census tracts in Indiana — including 5 in Evansville and 1 in Princeton — will be included in a new federal initiative that provides a tax incentive for investing capital gains in low-income areas.

Called “Opportunity Zones,” these areas must have a poverty rate of at least 20 percent or a median family income no higher than 80 percent of the state median (or of the metro-area median if that’s higher).

The program, created under the Tax Cuts and Jobs Act of 2017, allowed governors to nominate up to 25 percent of all low-income census tracts in the state for the designation. Once approved by the U.S. Treasury Department, Indiana’s designations will apply for 10 years.

The program encourages investment in opportunity zones through investment in “qualified opportunity funds” or “QOFs”. QOFs can be created by a variety of entities such as banks, economic development groups, or community foundations. QOFs need a targeted area or interest, but they have plenty of flexibility. For example, a group could create a fund for Midwest opportunity zones, Evansville zones, or even funds for health care facilities in Indiana zones. Each fund must invest at least 90 percent of its assets in opportunity zones, but those investments can be spread throughout multiple zones.

Any gains earned from investments in QOFs are tax-free. Moreover, by investing in QOFs, you can defer the inclusion of capital gains in gross income. Additionally, up to 15 percent of capital gains on investments in QOFs can be excluded from gross income altogether if they stay invested in the opportunity fund at least 10 years. Investments of 5 years can exclude 10 percent.

For example, if you sell stock that results in a $1 million gain, investing that money in a QOF would avoid a $238,000 tax bill that would come from a long-term capital-gains tax rate of 23.8 percent. In 10 years, if the value of the opportunity-fund investment grew to $2 million, the investor would pay $202,300 in taxes on the original $1 million gain and nothing on the second million.

Gov. Holcomb nominated 156 census tracts in 58 counties covering a combined 1,000 square miles and the homes of more than 500,000 Indiana residents. The zones will likely attract a wide range of developments that could include housing, commercial uses, energy projects, or startups that need space to grow.

For more information, please contact the Jackson Kelly attorney with whom you work or Joshua Claybourn in the firm’s Public Finance Industry Group at (812) 422-9444 or jclaybourn@jacksonkelly.com.

FOOTNOTE: Joshua A. Claybourn is counsel in the public finance and utilities industry groups focusing primarily on municipal finance, utility regulation, and commercial transactions. He practices out of the firm’s office in Evansville, Indiana.

Food_Inspection_Reports_05.24.2018

As the unofficial start of summer, the Memorial Day holiday weekend is a busy time for Americans. Each year, the highways fill with families in vehicles, on their way to start their summer vacations. To help keep drivers and passengers stay safe, the Indiana State Police is reminding motorists to Click It or Ticket. Aimed at enforcing seat belt use to help keep families safe, the national seat belt campaign will take place May 21 through June 3, concurrent with the busy travel season.

“Buckling up is something that should become second nature,” said Indiana State Police Superintendent Doug Carter. “Besides that. Buckling up is the law. The consequences of not buckling up is real and can include the loss of life. Often, this tragedy could have been prevented with the use of a seat belt. No excuses, buckle up!”

According to the National Highway Traffic Safety Administration, nearly half (48%) of the passenger vehicle occupants killed in crashes in 2016 were unrestrained. At night from 6 p.m. to 5:59 a.m., that number soared to 56 percent of those killed. That’s why one focus of the Click It or Ticket campaign is nighttime enforcement. Participating law enforcement agencies will be taking a no-excuses approach to seat belt law enforcement, writing citations day and night. In Indiana, the maximum penalty for a seat belt violation is $25.00.

“In 2016, almost twice as many males were killed in crashes as compared to females, with lower belt use rates, too. Of the males killed in crashes in 2016, more than half (52%) were unrestrained. For females killed in crashes, 40 percent were not buckled up.

“If you know a friend or a family member who does not buckle up when they drive or ride, please ask them to consider changing their habits,” said Indiana State Police First Sergeant Rich Myers. “Help us spread this life-saving message before a friend or family member is killed as a result of this senseless inaction. Seat belts save lives, and everyone—front seat and back, child and adult—needs to remember to buckle up—every trip, every time.”

Air Quality Forecast:  Please be advised that outdoor ozone levels in Evansville and Vanderburgh County may reach the “Unhealthy for Sensitive Groups” range established by the U.S. EPA for the 8-hour Ozone Standard.

 About This Alert:  Abundant sunshine, light winds, and low humidity may allow for ozone to breach the 8-hour standard on Thursday AND Friday. Even if the 8-hour standard isn’t exceeded, hourly readings could reach the USG category. Central and Southeastern Indiana will also extend the Ozone Alert through Friday, including the cities of Indianapolis, Terre Haute, and Louisville. Clouds and rain chances this weekend will keep ozone levels in the Good to Moderate range.

 The U.S. EPA recommends that sensitive groups such as children, older adults, those with respiratory diseases, and people who are active outdoors limit prolonged outdoor exertion, especially between the hours of 12:00 and 7:00 p.m. when the highest ozone concentrations are most likely to occur.

Within a few hours or days, exposure to higher levels of Ozone may cause lung and throat irritation, shortness of breath, and aggravate respiratory diseases such as asthma, emphysema, and bronchitis.  For more information about ozone and your health please go to: http://www.epa.gov/airnow/ozone-c.pdf

Do your share to protect air quality and reduce pollution levels:

• Conserve energy – turn off lights, reduce air conditioner use, etc.
• Use Public transit, or limit driving and avoid unnecessary idling at drive-through windows and school pick-up/drop-off areas, especially if there are long lines.
• Postpone refueling your vehicle until after 6:00 p.m.; don’t ‘top-off’ the tank when filling up.
• Consider using electric or manually operated lawn and garden equipment.   If you use gasoline-powered equipment, try to avoid use between 10:00 a.m. and 6:00 p.m.
• Limit the use of cleaning fluids, paint thinners or other materials containing volatile organic compounds (VOC).
• Postpone painting projects or use low-VOC coatings.
• OPEN BURNING IS PROHIBITED during an air quality alert.  The use of gas and charcoal grills for cooking is permitted, however delaying until after 6 p.m. is recommended.