Syracuse has proven itself a resilient city. This community has endured economic challenges, but together, we have kept pushing forward, committed to improving lives and livelihoods in every part of our city and region. 

By focusing on our strengths, fostering collaboration and emphasizing innovation, we have now found solid footing — a position from which Syracuse can achieve growth. 

With more work still ahead of us, stakeholders in business, government, and the nonprofit sector are working together to capitalize on the federal Opportunity Zones program, which presents another path to help accelerate downtown resurgence.

The 2017 Tax Cuts and Jobs Act created Opportunity Zones as a way to generate long-term investment and spark growth in economically distressed communities. 

The City of Syracuse has 14 census tracts that have been designated as Opportunity Zones. Most are located in or around downtown.

The economic position of our region today — facing some headwinds but poised for growth — makes Syracuse a fascinating destination to consider for investors who are interested in the program. They can make an impact in the community while advancing a business objective. 

M&T Bank and CenterState CEO recently teamed up with the law firms Bond, Schoeneck & King and Bousquet Holstein to host information sessions at the Marriott Syracuse Downtown. The day’s events gathered more than 70 people who attended on behalf of developers, investors, and other local businesses that recognize the program’s potential. Additionally, government officials and economic-development professionals brainstormed ways to eliminate hurdles that could threaten to slow down these projects.

The Opportunity Zones program requires investments be made through a Qualified Opportunity Fund (QOF), a partnership or corporation created for the purpose of investing in property or businesses located in an Opportunity Zone. It can be an attractive option for investors with existing capital gains. 

That’s because investors who direct capital gains into QOFs and remain invested in those funds for at least five to seven years earn certain tax benefits, including the temporary deferral of capital-gains taxes and a permanent partial-tax exclusion of up to 15 percent on the gain. Furthermore, a full tax exemption is provided on any appreciation of a QOF investment that is held for 10 years or more — meaning that no capital-gains tax will ever come due on this investment regardless of how much its value grows. 

Due to the tax benefits, QOF investments may offer competitive returns that could outperform other asset classes when capital gains are reinvested. To qualify for maximum benefits, investors will need to invest in QOFs by Dec. 31, 2019. While there are many factors to consider before investing, such as the risk associated with real estate or startups compared to blue-chip stocks, the tax benefits enhance the return on investments within Opportunity Zones. 

Put more simply, the program provides incentives to inject long-term capital into projects and companies that can spark revitalization.

Investors who want to be a part of a great American comeback story may want to look to Syracuse. Investing in this city gets to the heart of what the Opportunity Zones program is all about — driving capital into communities that are hungry for revitalization. 

With our growing ecosystem for tech startups, a skilled workforce that excels in advanced manufacturing and professional services, and an impressive network of 35 colleges and universities that develop top talent, Syracuse has all the right ingredients to generate growth. That’s especially the case when combined with an infusion of private capital. 

This region is ready to collaborate with investors and become a national example of the positive impact that can be achieved through the Opportunity Zone program. Let’s get to work.            

Lindsay Weichert is group manager for commercial real estate at M&T Bank. Ken Williams is group VP and market manager for wealth advisory services at Wilmington Trust, a subsidiary of M&T Bank. Weichert and Williams are both based in Syracuse.