Opportunity zones were created under the 2017 Tax Cuts and Jobs Act when Congress passed §1400Z. The goal of the Opportunity Zone program is to stimulate economic development and job creation by incentivizing long-term capital investments into underdeveloped areas.
Opportunity zones are identified by census tracts, and each state can designate up to 25% of their qualifying census tracts as opportunity zones. In many instances, the only difference between a qualifying opportunity zone investment and a non-qualifying investment is the side of the street, and there are often valuable real estate parcels located in prime locations that qualify for the tax incentives. Still, merely owning opportunity zone real estate is not enough. Investments made into opportunity zones must be made in a specific manner to qualify for the tax savings.
Disclosure: Pursuant to IRS Circular 201, this website does not constitute tax advice and you may not rely upon the information contained herein. The tax code is complex and nuanced rules exist which are summarized on this website. Tax advice may only be relied upon when obtained pursuant to an attorney- client relationship with our firm.
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