Iowa Gov. Kim Reynolds has nominated 62 parts of Iowa, including two in Davenport, to be designated special opportunity zones under a new Trump administration program aimed at encouraging private investment in low-income areas.
The governor's office released the list of locations Friday.
"I am pleased we were able to quickly mobilize a fair, robust and competitive process to select these communities," Iowa Gov. Kim Reynolds said in a statement Friday. “I’m looking forward to seeing the Iowa Opportunity Zones experience investment and growth that might not otherwise occur in these deserving areas.”
These economic opportunity zones are made up of census tracts where the poverty rate is 20 percent or greater or family incomes are less than 80 percent of the median for the overall area.
In Davenport, an area between Division Street, the Government Bridge, the Mississippi River and 5th Street was selected by the state. So, too, was an area running from roughly Main Street to Bridge Avenue and from the river to 13th Street.
The city had submitted four areas for consideration.
The state also selected two sites each in Clinton and Muscatine.
The opportunity zone program was created as part of the federal tax cut legislation signed into law last year and provides for a tax break on certain capital gains in return for an investment.
The program is a small part of the overall $1.5 trillion tax cut. The non-partisan Joint Committee on Taxation estimated it would cost $1.6 billion over 10 years. However, supporters of the program hope that it encourages private investors to get interested in areas they've previously ignored.
The program allows for a quarter of a state's eligible sites to be selected. The governor's office said it got proposals for 108 of the state's 247 eligible sites.
Now the Treasury Department will review Iowa's submission. The department has 30 days to designate the zones, which last for 10 years.
Davenport officials said last month that it chose areas for the program based on where infrastructure and zoning would allow for large commercial and residential development. They also said there was an interest in focusing on the central core of the city, though there also was a submission for an area around West Kimberly Road. It was not selected.