Washington –The U.S. Treasury Department and the IRS today issued final regulations implementing the Opportunity Zones tax incentive. Opportunity Zones, created by the Tax Cuts and Jobs Act, offer capital gains tax relief for investments in economically distressed areas. “Opportunity Zones are helping to revitalize communities and create jobs for hardworking Americans,” said Secretary Steven…
An Opportunity Zone is an economically-distressed community where new investments may be eligible for preferential tax treatment.
The Governors of each state nominated up to 25 percent of census tracts that either have poverty rates of at least 20 percent or median family incomes of no more than 80 percent of statewide or metropolitan area family income plus 5% of each states nominated tracts were exempt from low income qualification.
The IRS then qualified 8,700+ of the nationally nominated census tracks as opportunity zones equal to approximately 1 percent of the US land area.
Opportunity Zones are designed to spur economic development by providing tax benefits to investors and to encourage long-term investments in low-income urban and rural communities nationwide.