An Opportunity Zone is a census tract that has been classified as an economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury. The Federal Government created this program in the Tax Cuts and Jobs Act which passed on December 22, 2017.
Opportunity Zones provide a benefit to an investor who has triggered a capital gain by selling assets like stocks or real estate. By investing in a Qualified Opportunity Fund (QOF) within 180 days of the realized gain, the investor is able to defer their capital gains tax liability until December 31, 2026. Investors are able to reduce the liability by up to 15% if making a 7-year investment or defer the gain entirely on a ten-year investment. If you are an investor or developer and would like to take advantage of this program, the best place to start is to contact your attorney or accountant.
Questions & Comments
If you have any questions or comments regarding this program, please contact the Department of Planning & Community Development at firstname.lastname@example.org or 330-848-6729.