Opportunity Zone Program

Eligible Investments

Only equity investments are eligible for the Opportunity Zone tax incentive.

1. Business investments: can include investments in a new stock issuance for corporations and ownership interests in partnerships and LLCs.
2. Investments in real estate: must include an ownership interest of new construction assets that will be "substantially improved" within 30 months of acquisition by the Opportunity Fund.
3. New equipment and other assets: are also eligible investments.

Tax incentives for investing in a qualified Opportunity Fund:

Investors can defer tax on any prior gains until December 31, 2026 or the date on which an investment is sold or exchanged, whichever is earlier, so long as the gain is reinvested in a Qualified Opportunity Fund. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in basis equal to the fair market value of the investment on the date that the investment is sold or exchanged.

1.  Temporary deferral of inclusion in taxable income for capital gains reinvested into an Opportunity Fund.
2. A step-up in basis for capital gains reinvested in an Opportunity Fund.
3. A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years.