Opportunity Zones
About Opportunity Zones
Opportunity Zones were created by the Tax Cuts and Jobs Act of 2017 to encourage investment in low income communities. Investors who sell appreciated assets can defer taxes by reinvesting gains in Opportunity Funds, which invest in designated census tracts. If held for 10 years, gains on the Opportunity Fund investment are tax free. Over 8,700 census tracts were designated as Opportunity Zones. Critics argue that Opportunity Zones have primarily benefited wealthy investors and developers rather than low income communities. Studies have found that most investment went to real estate projects that would have proceeded anyway. Supporters point to successful projects in underserved areas. The program has not been comprehensively evaluated and its future is uncertain.
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