The disasters caused by hurricane Katrina in December 2005 have captured the Congress attention who took the decision to pass the Gulf Opportunity Zone Act of 2005 (the "GO Zone Investment Act") providing support to individuals and businesses affected by hurricanes Katrina, Rita and Wilma. This act has been implemented in order to offer tax and other financial deductions to those companies that take part in the regional process of rebuilding and restoration as well as to the individuals who choose to remain in the affected areas.



The Congress has also passed the Katrina Emergency Tax Relief Act of 2005 (KETRA) in September 2005, which implements several tax code changes to help hurricane Katrina victims and benefit the businesses that helped the disaster victims. The GO Zone Investment Act is actually an extension of quite a large number of the KETRA provisions referring to the victims of hurricane Rita and an expansion of the benefits of the businesses that had been impacted by both hurricanes. The GO zone investment property is to be reconstructed by companies that also benefit of several tax and financial deductions.

An investment seminar has been organized by the Governor of Louisiana to investigate expanding business opportunities in GO zone investment property. The seminar hosted a presentation of Louisiana’s investment opportunities and the appealing incentives provided by the GO Zone Investment Act of 2005. The GO zone investment property has offered businesses the opportunity to experience a financial with no precedent in the entire history of the United States.

Even if New Orleans has benefited of the biggest attention from mass media in the aftermath of hurricane Katrina, it is important to note that other areas of the Gulf Coast have also been severely damaged. The Biloxi area has also been compared to an American version of the atomic bombing of Hiroshima. Thus, a considerable area of the GO zone investment property has been considered for rebuilding especially the casino barges that were literally erased by the water and the Biloxi-Ocean Springs Bridge that was completely destroyed. Biloxi and its vicinity areas are thus suffering a dramatic comeback process. The city is thus under reconstruction starting from zero as 90% of the ocean front homes have been destroyed and the GO zone investment opportunities are more and more attractive.

There is an approximate number of 55,000 new homes that needed to be reconstructed in the Biloxi area, and unfortunately only about 10,000 of these homes have actually been built up till now. The reconstruction of the entire oceanfront of a city is entirely unprecedented in the history of the U.S. This is definitely a unique opportunity for the businesses rebuilding the GO zone investment property as they now have the chance to recreate the area without having to pay all the burdening taxes.

The hurricanes damages seem to have created a lot of favorable factors and the business opportunities in the Biloxi area. Casinos contribute to the economic growth, the low supply of housing contrasting with the high demand creates a construction paradise, the upgrading of the transportation system, and the smart money making opportunities by purchasing real estate are all features of the perfect environment for Biloxi GO zone investment.