Fuego Fino, an eco-friendly alcohol importation and wholesale business, has closed a deal to purchase land in Tucson, Arizona’s Qualified Opportunity Zone (QOZ) and New Market Tax Credit (NMTC) program area.
“My goal is to increase shareholder value and to fulfill my objective to create an eco-friendly headquarters for our Arizona distribution hub. I believe that this land is a prime location, as it is situated between one of the nation’s busiest highways and the area’s landmark 160-mile bike route. In terms of environmental, social, and governance (ESG), it lies in an area designated as both a New Market Tax Credit (NMTC) and a Qualified Opportunity Zone (QOZ), giving us many options in regard to financially structuring the construction budget. Regarding the environment, it has a solar rating of 92, giving us the ability to power this operation using the sun. I intend for this project—Ecosolx—to become a model for distribution as well as a last-mile vehicle recharging and operations facility,” says CEO Jessica Contreras.
About Qualified Opportunity Zones
This property is located in Census Tract 04019001200, and it would be one of the first QOZ projects within that zone.
Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States. Their purpose is to spur economic growth and create jobs in low-income communities while providing tax benefits to investors. Opportunity Zones were created under the Tax Cuts and Jobs Act of 2017 (Public Law No. 115-97). Thousands of low-income communities in all 50 states, the District of Columbia, and five U.S. territories are designated as Qualified Opportunity Zones.
Taxpayers can invest in these zones through Qualified Opportunity Funds.
Though the verdict on the appreciation potential of these properties remains mixed, estimation techniques and individual transaction data from Real Capital Analytics, Alan Sage of MIT, Mike Langen of University of Reading in the U.K., and Alex van de Minne of the University of Connecticut indicate that Opportunity Zone properties with redevelopment or renovation potential see a 10% to 20% price increase, and vacant land prices increase by up to 40%, compared to similar properties in eligible but undesignated tracts.
About the New Market Tax Credit Program
Historically, low-income communities experience a lack of investment, as evidenced by vacant commercial properties, outdated manufacturing facilities, and inadequate access to education and healthcare service providers. The New Market Tax Credit Program (NMTC Program) aims to break this cycle by attracting the private investment necessary to reinvigorate struggling local economies.
The NMTC Program attracts private capital into low-income communities by giving corporate investors a credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities (CDEs). The credit totals 39% of the original investment amount and is claimed over a period of seven years.
About the Company
During the global pandemic, when many companies are turning their strategic focus inward, it is refreshing to see a women-led company expanding upwards. In addition to managing this growth, it is also noteworthy that Fuego Fino, Inc. has begun to sponsor environmental projects by agreeing to regularly purchase carbon offsets.
Fuego Fino, Inc. is a planet-friendly wine and spirits company that focuses on developing the next high-growth product sector. They boost their revenue potential by curtailing waste and retaining the majority of their supply and distribution networks. Fuego Fino’s crowdfunding campaign is live now. For more information, please visit the website.
Website: https://fgfino.com