Posted in Finance, Accounting and Economics Terms, Total Reads: 377
Definition: Gulf Opportunity Zone
The Gulf Coast region in the US was hit hard in 2005 due to the impact of the multiple hurricanes which hit the area. To bring back normalcy into the area and to rebuild it, the government has passed the Gulf Opportunity Zone Act of 2005 (GO Zone Act). According to this act, the government offered tax deductions, exemptions and bond provison incentives in that area.
The GO Zone Act provided the private businesses to borrow tax-exempt money for covering the cost of acquisition, construction, reconstruction or renovation of non-residential real property (in Alabama, Mississippi and Louisiana). The provisions of GO Zone Act varied by state and the community effected.
Similarly, the provisions are not available for all kinds of projects. For example, the GOZBs can be used for the construction of non-residential property but cannot be used for movable equipment.