PPI - Radically Pragmatic
  • Donate
Skip to content
  • Home
  • About
    • About Us
    • Locations
    • Careers
  • People
  • Projects
  • Our Work
  • Events
  • Donate

Our Work

Kim for Governing, “How ‘Opportunity Zones’ Could Transform Communities”

  • October 30, 2018
  • Anne Kim

The new federal program could lure fresh investment to distressed areas. But the clock is ticking.

Twenty years ago, the rural hamlet of South Boston, Va., was a thriving blue-collar, middle-class community. Most of its residents were employed in manufacturing, such as at the nearby Burlington Industries textile plant and Russell Stover candy factory, or out in the tobacco fields.

Today, the once vast tobacco industry is largely derelict (China is now the world’s leading producer), and the Burlington plant and Russell Stover factory are closed. “We lost about $100 million in payroll out of this community over four years,” says South Boston Town Manager Tom Raab.

This is a familiar story for the nation’s rural areas, but Raab is optimistic about a turnaround. He is pinning his hopes, in part, on the new “opportunity zones” program passed in last December’s federal tax overhaul. It could generate billions in economic development for distressed communities like South Boston — provided they get the help they need.

Opportunity zones represent a breakthrough approach to community development. The program relies on an ingenious mechanism for spurring investment: Instead of tax credits or other traditional subsidies, investors are offered a temporary tax deferral for capital gains reinvested in designated opportunity zones. For investments held longer than 10 years, that deferral becomes forgiveness — a huge boon.

Continue reading at Governing.

Related Work

Press Release  |  September 10, 2025

PPI Report Finds That Socioeconomic Impact of Legalized Sports Betting is Less Harmful Than Feared

  • Michael Mandel
Publication  |  September 10, 2025

Balancing Innovation and Risk: The Case of Legalized Sports Betting

  • Michael Mandel
Blog  |  September 5, 2025

Some Thoughts on Homeownership, Credit Scores, and Policy Myopia

  • Paul Weinstein Jr.
Op-Ed  |  August 22, 2025

Manno for Philanthropy Daily: A Donor Playbook for Local Workforce Renewal

  • Bruno Manno
In the News  |  August 22, 2025

Jacoby on Fox 5 DC: Ukraine After the Peace Talks

  • Tamar Jacoby
In the News  |  August 15, 2025

Ritz on News Nation: 90th Anniversary of the Social Security Act

  • Ben Ritz
  • Never miss an update:

  • Subscribe to our newsletter
PPI Logo
  • Twitter
  • LinkedIn
  • Facebook
  • Donate
  • Careers
  • © 2025 Progressive Policy Institute. All Rights Reserved.
  • |
  • Privacy Policy
  • |
  • Privacy Settings