Why GO Zone Real Estate Investment?
The GO Zone incentives offered by the federal government provide an accelerated depreciation and huge tax benefits on your investment. It’s highly possible that you will be able to deduct 50% of the cost from your tax liability in the very first year. Besides this, the state of Mississippi is also authorized to offer businesses and entrepreneurs additional financial incentives for the development of housing in the region.
What exactly is a “GO Zone investment” and how does it affect you?
After Katrina, the US Congress passed the GO Zone Investment Act or the Gulf Opportunity Zone Act of 2005. The act was formulated to support the growth of the regions most affected by the hurricanes. Tax and other financial incentives were offered to those corporations who participated in the process of reconstruction.
The GO Zone Investment Act is an extension of a large number of provisions laid down in the Katrina Emergency Tax Relief Act of 2005 (Ketra) that was passed in September 2005. Provisions were aimed at benefiting Katrina victims, as well as the tax payers who took part in the restoration of the region. The GO Zone Investment Act expanded its benefits to businesses affected by both hurricanes, as well as tax deductions and other financial incentives to real estate companies who came forward to invest in the area. This has led to a growth in the real estate business here, that has been confirmed to be the most fertile business investment environment in US history.
So far, a major chunk of GO Zone real estate investment has been targeted towards rebuilding casino barges that were thrown out of the water when Katrina hit. The Biloxi – Ocean Springs Bridge which was almost completely destroyed after Katrina, is now undergoing re-construction. The rebuilding effort in this stretch of the Gulf Coast is startling – almost 90% of ocean front property had been decimated in the hurricanes, and therefore, the opportunities for re-construction are dramatic in scope. In Biloxi alone, there are expected to be at least 75,000 new homes needed over the next few years, and barely 10000 of these are currently standing. This provides a rare opportunity for those taking advantage of GO Zone real estate investment incentives to boost their portfolio.
With the casinos driving economic growth, housing supply unable to cope with increased demand, and transportation up grades, the time is right for a smart real estate opportunity in the GO Zone investment region.