Investors looking to bring new developments, housing, jobs and businesses to the Branson area, will have the opportunity to take advantage of a new federal tax incentive program.
The City of Branson announced three areas across the city have been approved for federal Opportunity Zones 2.0 designations. The three designated areas include Historic Downtown Branson, the West 76 Country Boulevard corridor, and the Gretna Road and Branson Commerce Park area, according to a press release from the City of Branson.
Missouri Governor Mike Kehoe made an announcement on Thursday, Nov. 5, that all 131 census tracts nominated by Missouri were approved for the federal program. Nationwide, 6,576 new Opportunity Zones were designated, including more than 2,500 in rural areas. The updated program places greater emphasis on attracting investment to communities through enhanced federal tax incentives.
“This is a tremendous opportunity for Branson to build its future,” Branson City Administrator Cathy Stepp said in the release. “We have properties ready to be refreshed and businesses looking to grow. This is one more tool we can use to attract meaningful private investment that will benefit the people who live here.”
In an Oct. 27, letter to Governor Kehoe, Mayor Larry Milton and all six members of the Branson Board of Aldermen expressed their united support to include Branson’s three eligible census tracts in Missouri’s recommendations for the federal program. The letter outlined the city’s ongoing infrastructure investments, major development plans, housing needs and opportunities to improve vacant and underused properties.
Stepp provided praise to the Branson mayor and board of aldermen for their leadership in securing the designation, which will take effect on Jan. 1, 2027, and will remain in place through 2036.
“Our board deserves tremendous credit for recognizing the value of this program and working together to make sure Branson was part of it,” Stepp said in the release. “This is another rung on the ladder to continued, communitywide economic success.”
To be able to utilize the federal tax benefits that come with investing in an Opportunity Zone located project, investors must make a new qualifying investment through a special investment fund. Any property purchased or developed through that investment must also meet federal requirements.
In the press release, the city explained the goal is to help communities grow through new economic progress that has a positive impact on both residents and businesses.
“For example, an investor might purchase a vacant building and turn it into a new business, develop housing on an unused property, or invest in a qualifying business that plans to expand,” the city explained the release. “Existing property owners may also benefit by selling property to interested investors or working with them on redevelopment projects. Unlike a federal grant program, Opportunity Zones do not provide money directly to the city. Instead, they encourage private investors to bring their own money into the community.”
The city confirmed they will not manage the Opportunity Zones program, provide funding, or receive any federal money. Regarding this program, the job of the city is to share information, connect interested parties with resources and support economic development opportunities, while private investors will be responsible for financing and developing their own qualifying projects.
While simply owning property in an Opportunity Zone does not qualify an investor for the federal tax benefits, existing businesses who meet federal program requirements and will be making qualifying investments could potentially benefit.
To learn more about Opportunity Zones and their potential impact visit BransonMo.gov/OpportunityZones.
