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With more than six years having elapsed since Hurricane Katrina ripped through the Gulf Coast GO Zone, the differences between the pre-Katrina and post-Katrina GO Zone may be remembered only by those that lived through the catastrophe. By no means has the destruction of the Hurricane been erased for everyone, as many people simply never returned to the area or to their GO Zone homes. However, shortly after Katrina passed through the area, the Federal Government passed the Gulf Opportunity Zone Act (GO Zone Act) with tax incentives like a 50% bonus depreciation for those private investors that were willing to assist in the rebuilding effort in the area.
The pre-Katrina Gulf Coast GO Zone presented a unique area for visitors. A mix of cultures, the area offered a variety of food, art, music and history. People were drawn not only by the culture, but also the climate, the beaches, the oceans and the wildlife. Katrina breezed through the GO Zone punishing not only the culture, but the natural beauty, the business and industry and a great number of homes. In the past six years, many people have put forth an incredible effort to restore some of the culture, clean up the beaches and the ocean and rebuild the businesses and homes. Truly, depending on the area visited, some tourists may not notice the signs of the destruction that occurred over six years ago. But reminders remain in the form of Katrina memorials, unrepaired homes and businesses and in the memories of those who lived through 2005.
Currently, the GO Zone is re-emerging as a top tourist destination in the United States. Many will remember that not long after the hurricanes, the Gulf Coast GO Zone also suffered a horrid oil spill that affected the shores and the ocean. The area has received approximately $20 million from BP following the spill to assist in rebuilding the tourism industry. Combined with the incentives found in the GO Zone Act, the area has been able to host events to begin enticing visitors once again. The gaming industry has a new presence in the GO Zone. Though not able to take advantage of the GO Zone Act benefits, local laws allowed casinos to be rebuilt on land, and investors took advantage of the changes to build bigger and better hotels and resorts for tourists. Beaches have been cleaned up and once again offer a safe haven not only for those looking for a swim in the ocean, but for the wildlife as well. Charter boats are in business for excursions for fishing and sightseeing. As natives of the GO Zone return to the Gulf Coast, so does the culture that made the area such a unique place to visit.
But even if the destruction is not as overt as it was even two or three years ago, there remains work to be done in the Gulf Coast GO Zone. The GO Zone Act is set to expire at the end of the year, meaning that tax benefits disappear with the Act. But this Act seems to have achieved at least some of its initial goals, revitalizing an area and setting the Gulf Coast GO Zone on a path to success. While the area is poised to continue its growth even without the GO Zone Act, there do still exist opportunities for investors who are looking to add real estate to their portfolio and become involved in a booming region.
If you are interested in learning more about the Gulf Coast GO Zone and the properties currently available to investors, now is not the time to hesitate. Contact Hanover Companies today to take advantage of the incentives that are likely to be only a memory after the first of the year!
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