Tax Breaks Fueling Luxury Condo Development In Gulf

"Rich federal tax breaks designed to spur rebuilding are flowing hundreds of miles inland to investors who are buying up luxury condos near the University of Alabama's football stadium."

"While many of the buyers are Crimson Tide alumni or ardent football fans not entitled to any special Katrina-related tax breaks, many others are real-estate investors who are buying the condos with plans to rent them out."

"And they intend to take full advantage of the generous tax benefits available to investors under the Gulf Opportunity Zone Act of 2005, or GO Zone, according to Associated Press interviews with buyers and real-estate officials."

"The GO Zone contains a variety of tax breaks designed to stimulate construction in Mississippi, Louisiana and Alabama. It offers tax-free bonds to developers to finance big commercial projects such as shopping centers or hotels. It also allows real-estate investors who buy condos or other properties in the GO Zone to take accelerated depreciation on their purchases when they file their taxes."