Regional Infrastructure Improvement Zones (RIIZs) are an innovative infrastructure funding and financing solution created by the Ohio-Kentucky-Indiana Regional Council of Governments and supported by NARC. NARC and OKI are working on reintroduction of RIIZs in the 113th Congress.
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What are RIIZs?
How do RIIZs work?
Why are RIIZs needed?
What are some of the benefits of RIIZs?
Who supports RIIZs?
Want to lend your voice to RIIZs?
RIIZs were introduced in federal legislation in the 112th Congress (H.R. 3780) by Rep. Geoff Davis (R- KY, 4) and cosponsored by Reps. Adam Schiff (D-CA, 29) and Aaron Schock (R-IL, 18). RIIZs are a change to the federal tax code to allow private corporations or individuals to contribute tax-deductible dollars toward construction and maintenance of public infrastructure. Acceptable infrastructure projects for RIIZs include surface transportation, water, wastewater and stormwater.Click HERE for a one-pager on RIIZs.
Click HERE to view project examples using RIIZs.
- Businesses and/or individuals who wish to form a RIIZ (a geographic area of any size and make up) and contribute towards infrastructure improvements must first apply through their local 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), as well as the eligibility of the projects in local or regional plans.
- Final approval of the RIIZ will come from the regional planning organization’s Board of Directors by determining plan(s) consistency.
- 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). Tax deductions for RIIZs are eligible for five years from the time of bill enactment.
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 five years to maintain its current status. RIIZs are offered as one solution in the menu of options to address infrastructure funding and financing.
- Uphold proven regional and local infrastructure investment decision-making processes.
- Drive monies directly to the local level – both rural and urban.
- Include local governments and local elected and appointed officials as critical partners in the federal process.
- Offer new options to fund infrastructure improvements and construction that are shelf-ready.
- Be a revenue positive for government.