Bill Overview
Title: Rust to Revitalization Act of 2022
Description: This bill sets forth a special rule for the certification and designation of a population census tract as a qualified opportunity zone. The population census tract must have a population of zero, was previously used for industrial purposes and is a brownfield industrial site, and is contiguous, including by water, to a population census tract that has been designated as a qualified opportunity zone. A qualified opportunity zone is an economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment.
Sponsors: Rep. Kildee, Daniel T. [D-MI-5]
Target Audience
Population: People living in communities surrounding brownfield sites in opportunity zones.
Estimated Size: 4000000
- The bill targets census tracts that are zero-population zones, which means no individuals reside there permanently.
- Although the immediate census tracts have a population of zero, adjacent communities in qualified opportunity zones where people do reside could see impacts from any development.
- Qualified opportunity zones are typically in economically distressed communities, suggesting the potential impact on such communities if development leads to economic revitalization.
- Brownfield sites are involved, which are typically abandoned or underused industrial sites available for re-use.
- While the sites themselves have no residents, people in economic communities surrounding these sites could benefit from job creation, improved economic conditions, and environmental remediation.
Reasoning
- The policy targets zero-population census tracts that are brownfield sites, meaning they do not directly affect any existing residents but indirectly influence people living in nearby qualified opportunity zones.
- Such zones generally contain economically distressed communities.
- The policy could lead to job creation and economic development benefits to surrounding areas, potentially improving community members' economic wellbeing and quality of life.
- The impact of the policy on individuals would depend largely on proximity to the redeveloped areas, existing job skills, and the nature of the new economic activities.
- Given the budget constraints, the policy will need to be implemented selectively in areas where it can have the greatest impact, focusing on brownfield sites adjacent to communities with higher need.
Simulated Interviews
teacher (Detroit, MI)
Age: 34 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- If the old factory site is cleaned up and put to use, it could bring jobs and safety back to our neighborhood.
- I am worried that those jobs may not be in education or fit my skills.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 3 |
| Year 3 | 6 | 3 |
| Year 5 | 7 | 3 |
| Year 10 | 8 | 2 |
| Year 20 | 8 | 2 |
construction worker (Buffalo, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- Hopeful that new contracts will become available due to opportunity zone developments.
- Our firm is eager to bid on projects arising from the site redevelopment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 9 | 3 |
| Year 20 | 7 | 3 |
freelance artist (Gary, IN)
Age: 28 | Gender: other
Wellbeing Before Policy: 3
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- If the policy leads to more people moving in or better community engagement, I might find more clients.
- I'm skeptical of how long it will take for real changes to happen.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 3 | 3 |
| Year 2 | 4 | 3 |
| Year 3 | 4 | 2 |
| Year 5 | 5 | 2 |
| Year 10 | 6 | 2 |
| Year 20 | 6 | 2 |
retired (Pittsburgh, PA)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- I am not as impacted, but I can see how these changes might benefit my children and grandchildren.
- There have been many promises about these sites before. I am cautiously optimistic.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
small business owner (Youngstown, OH)
Age: 39 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 14/20
Statement of Opinion:
- Revitalization would increase foot traffic, which can only be good for business.
- Concerns about whether the developers will use local suppliers or bring in their own.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 8 | 2 |
| Year 20 | 7 | 2 |
college student (Birmingham, AL)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- This policy gives me hope for internships and practical projects.
- I am concerned about whether the environmental cleanup will really prioritize safety.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
community organizer (Oakland, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 11/20
Statement of Opinion:
- Could potentially enhance community job training efforts.
- I worry these developments might drive up living costs for current residents.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 3 |
| Year 5 | 8 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 9 | 3 |
retired engineer (Cleveland, OH)
Age: 61 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- Retirement means I'm less affected, but investment in these areas can rejuvenate our community.
- I just hope they involve local people in the process.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 3 |
software developer (Newark, NJ)
Age: 31 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- Opportunity zone developments could improve infrastructure and connectivity.
- I remain skeptical about how this will tangibly affect tech opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
mechanic (St. Louis, MO)
Age: 27 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 13/20
Statement of Opinion:
- Development might bring in more cars for service, boosting our business.
- I worry about job stability if redevelopment changes local transit patterns.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
Cost Estimates
Year 1: $500000000 (Low: $450000000, High: $600000000)
Year 2: $520000000 (Low: $470000000, High: $620000000)
Year 3: $540000000 (Low: $490000000, High: $640000000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The environmental assessment and cleanup of brownfield sites will be necessary for development.
- The success of economic revitalization hinges on attracting sufficient investment into the newly designated opportunity zones.
- Careful monitoring and structuring of tax incentives are crucial to balance foregone revenue with economic gains.