How Do I Get to the GO Zone?

For investors and entrepreneurs, the GO Zone has turned in to the "go to" zone for reaping financial gain-and giving back to ailing communities in the process. As many investors flock to the GO Zone to visualize financial gain, others are left wondering, "What is the GO Zone, and how do I get there?"

What is it? Congress passed the Gulf Opportunity Zone Act after the 2005 hurricane season. GO Zone provides tax incentives and financial assistance for small businesses and residents affected by hurricanes Katrina, Rita, and Wilma. In addition, businesses participating in the rebuilding of the area are also offered tax relief and financial incentives.

Why was it created? With the destruction wreaked on Louisiana, Mississippi and Alabama, Congress decided to offer incentives for investors and businesses to rebuild the area. As a result, the Gulf Opportunity Zone Act of 2005 (GO Zone) was passed on December 16, 2005, and approved by President George W. Bush on December 21, 2005.

Basically, this legislation is a way to reward private entities that have financial interests in the Gulf Coast area, and to attract other investors to the area-promoting rebuilding and regrowth. As a result, public funds are not solely responsible for financing and rebuilding-saving taxpayers and the government money.

What areas are covered by the legislation? Don't be fooled into thinking that any hurricane-ravaged area is eligible for benefits. For example, although the entire state of Louisiana was declared a Katrina Disaster Area, only certain areas are covered under the Act. It is imperative to know exactly which areas are eligible for benefits before making financial decisions.

While many more areas may be considered "disaster areas," this does not necessarily make them areas covered by the Act. There are differences in the types of incentives offered, so knowing the status of the area you plan on investing in is key to painting a complete financial picture. To date, the GO Zone covers the following areas in the following states.

Louisiana Acadia, Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Vermilion, Washington, West Baton Rouge, and West Feliciana counties.

Alabama Baldwin, Choctaw, Clarke, Greene, Hale, Marengo, Mobile, Pickens, Sumter, Tuscaloosa, and Washington parishes.

Mississippi Adams, Amite, Attala, Choctaw, Claiborne, Clarke, Copiah, Covington, Forrest, Franklin, George, Greene, Hancock, Harrison, Hinds, Holmes, Humphreys, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lamar, Lauderdale, Lawrence, Leake, Lincoln, Lowndes, Madison, Marion, Neshoba, Newton, Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott, Simpson, Smith, Stone, Walthall, Warren, Wayne, Wilkinson, Winston, and Yazoo counties.

Make sure to consult your attorney and/or tax consultant to ensure that you make the right investment decision. Although not all of the Gulf Coast is covered under GO Zone, many areas are ripe for investment and development, making them the "go to" spot for the right type of investor.

Article Source: http://www.ApprovedArticles.com

Dr. Chris Anderson is a co-founder of GoZoneOnline.com , the leader in Go Zone information for real estate investors. Visit us today to learn more about GoZone Depreciation and receive Go Zone qualified properties by email.

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