The Opportunity Zone incentive offers significant tax benefits for investors to
help attract funding for projects and businesses in low-income areas.
Individuals and businesses can delay paying federal income tax on capital gains
until as late as 2026 if those gains are invested in Opportunity Funds that
hold at least 90% of assets in businesses or tangible property located in census
tracts designated as OZs.
Further, gains on investments held for at least 10 years can be federal income
tax-free. Most types of tangible property, real estate projects and active
businesses can be qualified OZ property. The OZ benefits could reduce the cost of
capital for these activities, especially when paired with other federal, state, and
local incentives. Our OZ team provides a full spectrum of cross-practice services to
help investors, fund sponsors, developers, entrepreneurs, innovators, economic
development officials, and community leaders understand and implement the OZ
incentive in order to unlock its full investment potential.
