What Are Opportunity Zones?
Opportunity Zones are economically distressed communities, designated by the state and certified by the U.S. Treasury, where new investments may be eligible for preferential tax treatment under the Tax Cuts and Jobs Act of 2017. There are 8,764 designated Opportunity Zones across all 50 states, the District of Columbia, and five U.S. territories.
Tax Benefits
- Temporary deferral of capital gains taxes on prior gains invested in a Qualified Opportunity Fund (QOF).
Capital gains invested in a Qualified Opportunity Fund by December 31, 2026 are deferred only until December 31, 2026. The 10% and 15% basis increases from the original program are no longer available to new investors, because they required investments made by December 31, 2021 and December 31, 2019. The benefit that remains is the 10-year rule: if the investment is held at least 10 years, appreciation on it can be excluded from federal tax, with December 31, 2047 as the final date to sell and still elect that treatment.
- Permanent exclusion of capital gains on QOF investments held for at least 10 years.
Data Sources
Zone boundary data is sourced from the U.S. Department of Housing and Urban Development (HUD) ArcGIS API. Census tract boundaries are based on the 2010 Census TIGER/Line shapefiles. County name data is provided by the U.S. Census Bureau.
Disclaimer
This website is for informational purposes only and does not constitute tax, legal, or investment advice. Opportunity Zone designations and tax benefits are subject to change. Consult a qualified tax advisor before making investment decisions based on Opportunity Zone information.