As sad as it sounds, hurricanes seem to offer some of the major real estate investment opportunities in the last decades and the Go Zone investment opportunity is no exception. After the series of unfortunate events that struck the American South-Eastern coast in 2005, President George W. Bush signed the Gulf Opportunity Zone Act of 2005, that is also known as the HR 4440. This act has the role of facilitating reconstruction of the damaged areas and improving the situation of the communities and residents of the Gulf Coast region that received the most devastating effects of Hurricanes Katrina and Rita. The bill refers to the Go zone investment property aiming to help the people in these regions to return to their normal lives. The Act is popular under the name of Go Zone Act and areas impacted by this bill are now referred to as the Go Zone investment property. GO Zone Act After the hurricanes Katrina, Rita, and Wilma struck the Gulf Coast region, the areas remained severely devastated so that many people could not find shelter in order to restart their lives. A lot of people decided to leave, but others are simply determined to rebuild their cities to be bigger and better than ever. Thus a lot of construction businesses and not only have taken advantage of the GO zone investment opportunity in order to help bring life once more to the affected areas. The Act encourages investors to build their businesses in the area, create jobs for the residents in the region, while benefiting of a lot of tax deductions and other financial incentives. With the various provisions stated in the bill, the government entices residents to rebuild their houses and businesses that are considered Go zone investment property. The Gulf Opportunity Zone as defined in the act comprises Louisiana, Mississippi, and Alabama states that suffered the biggest damages after the hurricanes. The Act offers tax incentives to investors and tax relief for individuals. The Go zone investment opportunity is sustained by major provisions of this bill and can be quite promising to the states' economies. Small business expensing has been increased from $100,000 to $200,000 as an Go zone investment opportunity The businesses receive up to 50% bonus depreciation deduction for new equipments NOL (Net Operating Loss) period is in this case good up to 5 years for losses that are extended from previous 2 years The Go zone investment property that is a business rendered inoperable due to the hurricanes' damage are eligible for the Employee Retention Tax Credit of 40% for $6,000 paid wages per employee There is up to $600 a month that can be deducted by the employee from their gross income for employer if they are provided housing within a GO zone investment property. All college and graduate students of academic institutions in the GO Zone area are eligible for Hope Scholarship of up to $3,000. The rehabilitation tax credit has also increased up to 13% for eligible rehabilitated buildings and 26% for historical structures.
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