2018 -- S 2676

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LC005230

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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S E N A T E   R E S O L U T I O N

RESPECTFULLY REQUESTING THAT THE GOVERNOR AND RHODE ISLAND

COMMERCE CORPORATION, IN CONSULTATION AND COLLABORATION WITH THE

RHODE ISLAND CONGRESSIONAL DELEGATION, DESIGNATE THE BLACKSTONE

RIVER CORRIDOR MUNICIPALITIES OF PROVIDENCE, WOONSOCKET, EAST

PROVIDENCE, PAWTUCKET, AND CENTRAL FALLS AS A QUALIFIED OPPORTUNITY

ZONE PURSUANT TO THE NEW FEDERAL TAX BILL AUTHORIZATIONS

     Introduced By: Senators Conley, Ruggerio, Goodwin, Crowley, and Coyne

     Date Introduced: March 20, 2018

     Referred To: Senate Housing & Municipal Government

     WHEREAS, One in six Americans lives in a distressed community according to the

Economic Innovation Group. In these areas, household incomes are far below the national level,

which is $59,000, and the poverty rate remains significantly above the national level. These

communities have lost approximately six percent of their jobs and their business establishments

from 2011 to 2015; and

     WHEREAS, A section in the recently passed 1.5 trillion dollar federal tax cut law allows

for the creation at the state level of "qualified opportunity zones". These "zones" give tax

incentives to those people and companies that invest long-term in distressed communities. This

new law allows the States to create "qualified opportunity zones" within their distressed

communities and allows those who invest in these zones to minimize their tax burden through

preferential treatment of their capital gains. With more than two trillion dollars in unrealized

capital gains sitting on the balance sheets of corporate America and with individuals, this new law

gives these capital gains holders an incentive to roll these gains into opportunity funds and

thereby defer taxes, at least temporarily, on their investments. An investor who retains a qualified

opportunity zone investment for seven years will only pay 85 percent of the capital gains taxes

due on their original investment. If the investor holds these opportunity zone investments beyond

ten years, they avoid capital gains taxes on any proceeds from their qualified opportunity zone

investment; and

     WHEREAS, Rhode Island’s Blackstone River corridor is a Federally Designated

National Park with a significant manufacturing history greatly contributing to our Country’s

manufacturing presence in the world; and

     WHEREAS, The Blackstone River corridor will soon be improved and incorporate a new

bike trail from Providence Harbor to Woonsocket, supported and paid for by the taxpayers of

Rhode Island with the recently passed Green Bond initiative; and

     WHEREAS, Combining the economic initiatives and funding available at the Rhode

Island Department of Environmental Management for Brownfield cleaning and water quality, in

partnership with the Rhode Island Commerce Corporation Jobs Development Act economic

opportunities, and a newly designated Qualified Opportunity Zone, may help create a catalyst for

increasing the median income levels of those aforementioned city residents within this corridor to

meet and exceed the current national level of $59,000 and lower the poverty rates for years to

follow; now, therefore be it

     RESOLVED, That this Senate of the State of Rhode Island and Providence Plantations

hereby respectfully requests that the Governor, and the Rhode Island Commerce Corporation, in

consultation and collaboration with the Rhode Island Congressional delegation, utilize all

available resources to designate the Blackstone River corridor municipalities of Providence,

Woonsocket, East Providence, Pawtucket, and Central Falls as a Qualified Opportunity Zone, and

to make the appropriate nominations or request a 30-day extension, on or before March 21, 2018;

and be it further

     RESOLVED, That the Secretary of State be and hereby is authorized and directed to

transmit duly certified copies of this resolution to Governor Gina M. Raimondo, Stefan Pryor,

Secretary of Commerce, and to the Rhode Island Congressional Delegation.

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