07/27/2020

Opportunity Zone Encourages Economic Development in the East End

Press

Houston makers and manufacturers have been the backbone of economic activity in the East End since the early 1900s. Developed by prosperous cement, cotton and textile operations—and later propelled by the Houston Ship Channel’s expansion—the area remains home to a diverse range of industrial properties and manufacturers. 

Today, the East End is located in a Qualified Opportunity Zone (QOZ). Designated by the 2017 Tax Cuts and Jobs Act, QOZs are economically-distressed communities where new investments are encouraged (via preferential tax treatment) to spur economic development and job creation. In Texas, QOZs are nominated by the governor and then certified by the Secretary of the U.S. Treasury. 

Thoughtful community development is at the core of QOZ designations, and is integral to our mission at East End Maker Hub. We hope to build on the area’s historic manufacturing strength, empowering and equipping the community and attracting thriving businesses that provide more middle-income employment opportunities. 

In addition to the many amenities we offer, leasing space from The Hub and operating in a QOZ has major perks. Among the many benefits of growing your business in a QOZ:

  • Companies can delay or reduce capital gains tax liability. Deferrals are available on both capital gains and qualified 1231 gains taxes (if invested in a QOF). 
  • A decreased capital gains tax (usually ranging from 15-20%) also results in significant savings and reinvestment into operations. 
  • Additionally, if at least 50% of business takes place in the space, none of a business’ equipment expenses, and only a certain percentage of company profits, are taxable. 

These perks are particularly attractive for companies that expect substantial growth in the near-future and will have to scale quickly. If relocating your business to a QOZ at the East End Maker Hub sounds like a good fit, message us about leasing today. You can also follow us on Facebook, Twitter, LinkedIn and Instagram, and subscribe to the Hubdate newsletter for the latest updates on East End Maker Hub construction, programming and more.