A tax incentive, with bipartisan roots, aims to foster development in poor areas. It has fueled building, but it hasn’t always aided local residents.The bipartisan tax incentive, aimed at promoting development in impoverished areas, has been successful in spurring construction, but it has not always benefited local residents. In Birmingham, Alabama, Alex Flachsbart, CEO of Opportunity Alabama, drives around the city at a rapid pace, pointing out various projects that have been transformed with the help of the tax break. However, while the downtown area has seen a surge of investment, the historically African American northwest quadrant has not received as much attention.

The opportunity zone incentive, created in 2017, was championed by both Democrats and Republicans and touted by former President Donald J. Trump as one of his proudest economic achievements. However, the benefits of the incentive have not been evenly distributed. In Birmingham, for example, the majority of the capital has flowed towards the more popular areas, leaving the less developed parts of the city behind.

According to Flachsbart, the opportunity zone incentive has acted as a “nudge” for areas that were already on the brink of development, but it has not been as effective in areas that were struggling. As Congress considers extending the incentive, which is set to expire in 2026, they are also examining how the money has been distributed and whether it has truly benefited the designated areas. 

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