Areas selected include parts of downtown Klamath Falls and sections of Chiloquin off Highway 97.

More details continue to come out on the new program, which stems from the recent Tax Cuts and Jobs Act that Congress passed last year. Previous reports from the Herald and News say an estimated 262 communities in Oregon qualify for the designation and at least 84 were planned to be selected.

“They’re designed to entice investment in areas that are considered economically distressed,” Andrew Stork, operations manager for Klamath County Economic Development Association, told the local press Wednesday.

Stork estimates that it could take at least one or two months for feds to OK the next steps.

Opportunity knocks

Opportunity Zones are low-income areas with a poverty rate of at least 20 percent and median household income no greater than 80 percent of median household income for the region. People who use capital gains to invest in an Opportunity Zone are able to avoid paying taxes on those capital gains.

Stork said this would ultimately give investors with unrealized capital gains a chance to defer or reduce tax liabilities on those gains by then reinvesting earnings into special opportunity funds.

“They’re looking for a home – they’re looking for options,” Stork said of potential new investors.

For Klamath County, Stork said recent KCEDA estimates show nearly $4 billion in potential investment activity for the future, which factors in several projects and local improvements for current businesses, in addition to potential investors.

The Opportunity Zone program claims it would help spur such developments through tax benefits to interested investors, according to the Internal Revenue Service. Investors would then be encouraged to reinvest the money into struggling communities designated as an Opportunity Zone.

These zone designations stay in place for at least 10 years and investors can also defer tax on any prior gains until no later than Dec. 31, 2026, according to information from the U.S. Secretary of Treasury’s office.

City, county weigh in

Talks on Opportunity Zone designations first came up at a Feb. 28 Klamath County Commissioners meetings, where commissioners said they were working with KCEDA and others to apply for the incentives.

Others in attendance during Wednesday’s conference include Klamath Falls City Manager Nathan Cherpeski, Jared Hall on behalf of the Klamath Tribes and Klamath County Commissioner Kelley Minty Morris.

Speaking after Stork, Minty Morris said she thought of this as the perfect time to show that Klamath County is “open for business.” She said Gov. Kate Brown’s decision helps point out that the state knows there’s room for growth in the area.

“In my mind, all of Klamath County is an opportunity zone,” Minty Morris said.

Cherpeski spoke after Minty Morris, touching more on details of the areas included in downtown Klamath Falls. He said the Opportunity Zone designation starts around TimberMill Shores and goes up to the industrial areas close to downtown.

Cherpeski said he looks forward to using the new designations as a tool to help boost newer businesses.

“There’s no magic wand in this business to make things happen, but this is, again, a tool we hope to incentivize those who are interested in investing to invest in our community,” Cherpeski said.

Stork said that more information, which includes specifics on designation boundaries, would be available as soon as Thursday.

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State Names ‘Opportunity Zones’ for Klamath County (H&N)