Departments/ Transportation / RIIZ

 

The infrastructure inadequacies plaguing our communities – crumbling bridges, aging highways, rail, ports, and mass transit, and deteriorating water and sewer systems – are in dire need of maintenance and improvement. The American Society of Civil Engineers estimates the national infrastructure needs more than $2.2 trillion dollars over the next fi ve years to maintain its current status. Regional Infrastructure Improvement Zones (RIIZs) have been offered as one solution in the menu of options to address infrastructure funding.

 

Download the RIIZ Information Guide

 

Regional Infrastructure Improvement Zones
An Innovative Infrastructure Funding Solution

 

What are Regional Infrastructure Improvement Zones?

Developed by the Ohio-Kentucky-Indiana Regional Council of Governments (OKI) in conjunction with the National Association of Regional Councils (NARC), “Regional Infrastructure Improvement Zones” (RIIZs) are a new, innovative solution to encourage private-sector investment in infrastructure through a favorable tax treatment of funds and streamlined approval
processes. RIIZs will allow private corporations or individuals to contribute tax-deductible funds toward construction and maintenance of public infrastructure. RIIZs are a grassroots opportunity to attract infrastructure investment that leverages federal and state funds, while benefiting communities and keeping people, businesses and the economy growing and moving.

 

How Will RIZZs Work?

Businesses and/or individuals who wish to form a RIIZ must first apply through their local multi-jurisdictional regional planning organization – Council of Government (COG), Metropolitan Planning Organization (MPO), Economic Development District (EDD), or Regional Council (RC). The regional planning organization will be responsible for determining if local governments in the area, as well as other community organizations and stakeholders, support the proposed infrastructure improvement(s). The regional planning organization will also be responsible for determining the eligibility of the proposed projects in local, state or regional long-range plans. Final approval of the RIIZ will come from the regional planning organization’s Board of Directors. When these conditions are satisfied, a certificate of approval will be issued to the RIIZ, and filed with the state’s Attorney General and the Internal Revenue Service.
When the certificates are filed, members within the RIIZ will be permitted to make tax-deductible contributions,
which will be realized on a corporate or individual annual tax form(s). As with any donation to a charitable cause,
the RIIZ will issue individuals a receipt indicating the amount of their contribution as well as the date received. The
contributing business or individual would then deduct the amount of their donation from the income taxes.

 

What Projects are Eligible?

Acceptable projects for RIIZs may include road repair or construction, transit facility construction, the purchase of right-of-way, historic preservation of transportation facilities (i.e. train stations, covered bridges), water runoff facilities, drinking, wastewater and stormwater system upgrades, green infrastructure, watershed improvements or other projects that will enhance the infrastructure system of the designated area. RIIZ will not be permitted for upgrades that are considered customary or ordinary for development approval.
A RIIZ may be as small as a single street or as large as an entire city. One example of an RIIZ could be an add-a-lane project at a four-way intersection: On one corner is a local bank, another is a department store while the thirdand fourth corners housean office building and a gas station. Each of thesecorporations, in concert with their local government, can apply to their regional planning organization for RIIZ status in order to add a turn lane, sidewalk, or bus stop that will enhance safety, business, job and community opportunities.