Malloy nominates 72 low-income zones for federal program

HARTFORD, Conn. (AP) — Gov. Dannel P. Malloy's administration is nominating 72 low-income zones in 27 Connecticut municipalities for a federal community development program.

The Democrat had created an application process for municipalities interested in participating in the Opportunity Zone Program. Each governor must submit a plan to the federal government designating tracts as Opportunity Zones.

Qualified tracts must have a poverty rate of at least 20 percent of the median income that does not exceed 80 percent of the area median income.

The program provides a federal tax incentive for investors to re-invest unrealized capital gains into these special zones by pooling money with other investors through Opportunity Funds.