WHAT are Opportunity Zones?
Opportunity zones were created by the Tax Cuts and Jobs Act of 2017. They are designed to help stimulate investment, economic development, and job creation in economically distressed areas.
HOW are Opportunity Zones beneficial?
The Opportunity Zones program is a means of providing preferential tax treatment when investors reinvest capital gains in Quality Opportunity Funds (QOF). Tax incentives include: 1) Deferral of capital gains tax; 2) Step-up in basis; or 3) Capital gains tax exclusion. Capital gains are the 'profit' made when selling an investment or property for more than the purchase price. QOF's may be established by Corporations, Partnerships, and LLC's through self-certification with the IRS.
WHERE are Opportunity Zones located?
As of February 2019, 8,740 Qualified Opportunity Zones have been designated by the US Government. In 2018, 427 census tracts were nominated by Florida Governor, Rick Scott and designated as such by the U.S. Department of Treasury. A full list of Florida's Opportunity Zones can be found here. An interactive map showing the location of all Qualified Opportunity Zones is available here.
Two eligible census tracts in Nassau County (depicted below) were ultimately identified as Qualified Opportunity Zones (Source: U.S. Dept. of Treasury Community Development Financial Institutions Fund).