Invest in Opportunity Zones
Learn how to pay no capital gains on your next real estate investment
What is the Opportunity Zones Program?
Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. Its stated purpose is to encourage entrepreneurship and expansion capital for distressed areas. The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones.
Who determines the Opportunity Zones?
The Governor of each state and territory nominates the Opportunity Zones, which are based on census tracts, and submits these to the Treasury Department for approval. Since the program is similar to the New Markets Tax Credit Program, it uses the same eligibility criteria for determining low-income census tracts, which currently are calculated using the data from the 2011-2015 American Community Survey.
How do investors invest in Opportunity Zones?
Why would investors invest in Opportunity Funds?
Who establishes and certifies the Opportunity Funds?
What type of investments can the Opportunity Funds make?
How do the communities designated as Opportunity Zones benefit?
What is the State’s role in this program?
How were the recommended Opportunity Zones selected?
- Meet the eligibility criteria for determining low-income census tracts or qualified contiguous census tracts, which currently are calculated using the data from the 2011-2015 American Community Survey (same criteria as for New Market Tax Credit Program).
- Overlap with the Enterprise Zones Program and Transit Orient Development (TOD) Zones. In the guidance from the NGA, it was strongly emphasized to overlay the Opportunity Zones Program with other economic development initiatives in the state since the programs should re-enforce each other.