That solution comes in the form of a new economic development incentive known as opportunity zones. Under the tax law, investors will receive a steep reduction in taxes on their capital gains in exchange for substantial and long-term investment in low-income communities designated as opportunity zones.Cognitive form of learning this tax incentive could be combined with others in the economic development toolkit, such as the new markets tax credit and historic building preservation tax credits, to support a wide variety of investments in real estate and businesses.Cognitive form of learning

Now the race is on to attract those investments. Since the treasury department finalized the opportunity zone locations in june, investors, developers and local leaders have been eyeing opportunities to invest in low-income housing, historic building rehabilitation and tech startups, among others.Cognitive form of learning but if the goal is to reimagine these underserved communities and empower their residents, investing in better early child care facilities can deliver powerful results.Cognitive form of learning

Safe and developmentally appropriate early care and learning programs are essential to building healthy and economically sustainable communities where families and young children thrive.Cognitive form of learning the quality of the physical buildings and spaces where children learn, play and grow are a fundamental part of their cognitive development and social, emotional and physical well-being.Cognitive form of learning and with the number of dual-earner households rising, any expansion of economic opportunities in low-income communities must make room for child care programs.Cognitive form of learning

Fortunately, the incentives provided by opportunity zones — which can be found in rural and native american communities, too — could be well-suited to addressing this challenge.Cognitive form of learning in places where the demand for early childhood options outpaces supply, opportunity zones can be used to purchase and build new facilities or substantially rehabilitate existing ones.Cognitive form of learning under the right conditions, the incentive could even be used to support start-up early childhood programs in areas the current market does not serve.Cognitive form of learning

Several hurdles remain, however, before opportunity zones can be brought to scale to help close the early childhood gap. The IRS is currently in the process of developing regulations to determine the rules of the road for such investments.Cognitive form of learning the unique character of early childhood facilities and the thin margins in the industry mean that these regulations could make or break the role of opportunity zones in solving this problem.Cognitive form of learning in real numbers, that could mean a difference between $500,000 worth of investments in child care — or $500 million.

The bipartisan policy center will be holding a roundtable of early childhood and economic development experts over the next month to tackle this problem.Cognitive form of learning the group aims to provide recommendations to the IRS on allowing opportunity zones to be productively used to close the early childhood gap and to identify principles for using the incentive for early childhood facilities.Cognitive form of learning

If opportunity zones are to succeed, community leaders, investors and public officials must ensure that the incentive is used to fund projects that contribute to the public good, and not just private development that would have happened with or without the tax break.Cognitive form of learning investing in child care not only offers a powerful path to economic development, it also improves the lives of america’s families.