WHAT ARE OPPORTUNITY ZONES?
Under the Investing in Opportunities Act–which is included in the Tax Cuts and Jobs Act of 2017(PL-11597) passed into law on December 19, 2017–the Opportunity Zones Program (IRC1400Z) was created. This is a community development program devised to encourage long-term investments in low income communities designated by each state as Opportunity Zones. The program provides investors a tax incentive to re-invest their unrealized capital gains through Opportunity Funds into these areas .
WHAT ARE OPPORTUNITY FUNDS?
A Qualified Opportunity Fund is an investment vehicle, set up as either a partnership or corporation, for investing in eligible property within an Opportunity Zone. It utilizes investor’s gains from a prior investment for funding the Opportunity Fund.
WHAT ARE THE BENEFITS TO INVESTORS?
Investors can defer capital gains on earnings that are reinvested in “Qualified Opportunity Funds”–special purpose entities that exist to invest in businesses within Opportunity Zones. Long term investors receive an additional step-up in basis, cancelling out some of their original tax bill (10% after five years and rising to a total 15% increase in basis after seven years). Investments maintained for ten or more years are not subject to any additional capital gains tax on earnings from Opportunity Zone Investments.
The Economic Innovation Group has prepared a fact sheet outlining the benefits of Opportunity Zones for investors.
UPDATES ON OPPORTUNITY ZONE IMPLEMENTATION:
- IRS | Opportunity Zones Frequently Asked Questions
- U.S. Department of the Treasury | Community Development Financial Institutions Fund (CDFI) Opportunity Zones Resources
ADDITIONAL OPPORTUNITY ZONE INFORMATION:
- Enterprise Community Partners Opportunity Zones page
- Local Initiatives Support Coalition (LISC) Fact Sheet
- Bloomberg Tax Fact Sheet
- Council of Development Finance Agencies Opportunity Zones page
- Greenberg Traurig website
- Novogradac resource center
- Holland & Knight three-part series on Opportunity Zones
- K&L Gates Opportunity Zone site
Opportunity Zones & Promise Zones Mapping Tool
This tool displays designated qualified Opportunity Zones as published by the CDFI Fund as of June 15, 2018, and designated Promise Zones as defined by the Promise Zones Initiative as of June 6, 2016.
Opportunity Zones and/or Promise Zones can be seen by searching for an address or zooming in on an area in the map.
More information about designated census tracts can be viewed by clicking on the area.
The information, maps, and external links contained in this website, including all information relating to Opportunity Zones and Promise Zones, among others, is presented for informational purposes only. The information is provided by APPA as a courtesy and while we endeavor to keep the information as current and correct as possible, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, related graphics, or links contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will APPA or any of its employees, owners, agents, members, managers, or be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website. Through this website you are able to link to other websites which are not under the control of APPA. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views or information expressed therein. Every effort is made to keep this website available at all times. However, APPA takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.