The Grant County Economic Growth Council furthered their plan to bring a federal tax break program to Marion during their meeting Tuesday.
The Growth Council has been looking into the Opportunity Zone program, a nationwide federal plan created as a result of the tax reform approved in 2017, to offer tax incentives to businesses willing to invest in Marion.
The plan works by offering three different tax incentives to businesses investing in low-income communities through an Opportunity Fund. The Opportunity Fund provides three options for investors, each of them different depending on how long the investment is held.
Given a $100 principal investment in an Opportunity Fund, a five-year investment results in a $31 tax bill with a $109 return, a seven-year investment yields a $35 tax bill with $129 return, and a ten-year investment would yield a $20 tax bill with a $176 return.
According to Growth Council Executive Director Tim Eckerle, the plan is designed to reward long-term investments and is geared towards “large scale projects.”
He said the two areas of interest include the area surround Indiana Wesleyan University, particularly near Cafe Valley on 38th Street, and the central square in Downtown Marion.
The federal tax breaks would provide incentives for businesses to build in those designated low-income areas. Eckerle added that the council is currently in the process of submitting the census for the areas in question to be designated Opportunity Zones.
Additionally, the Growth Council received a donation from IWU for the Charm Grant, which encourages business owners to update structural facades with $1,000 in funds. IWU donated $1,000 to the program, according to Eckerle.
Victoria Herring, director of business development and operations for the council, said they have been continuing to survey the community following the “Why Marion” forum that took place earlier this month at IWU.
She said the forum facilitated “good conversations about community, and why people live and work in Marion.”
Herring added that they are surveying community members hoping to find more stories like the ones shared at the forum.