Gov. Bruce Rauner has nominated Chemung Township to received a federal Opportunity Zone designation.
“The Federal Treasury Department created the Opportunity Zones program to encourage long-term investment and job creation in low-income areas of the state by allowing investors to reinvest unrealized capital gains in designated census tracts,” Harvard Mayor Mike Kelly said. “This will become an additional tool to attract outside investment into Harvard.”
The program was established in 2017 by the federal Tax Cuts and Jobs Act. Under the program, investors can defer unrealized capital gains and invest those dollars into opportunity funds.
The program intends to spur private investment in distressed communities, according to federal documents.
Projects are limited to areas contained in designated zones, which are restricted to low-income urban and rural communities. Illinois can designate about 325 opportunity zones.
Chemung Township covers northwest McHenry County and includes Big Foot, Lawrence, Chemung and the city of Harvard.
The city of Woodstock approved a resolution in support of the program in March and submitted interest in participating.