Opportunity Zones are a community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide.
The program provides tax incentives for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Qualified Opportunity Zones designated by the chief executives of every U.S. state and territory.
What are Opportunity Funds?
Opportunity Funds are private sector investment vehicles that invest at least 90 percent of their capital in Opportunity Zones. They offer investors the opportunity to put that money to work rebuilding underdeveloped communities.
The fund model allows a variety of investors to pool their resources in Opportunity Zones, increasing the scale of investments going to underserved areas.
The Opportunity Zones Program offers three tax incentives for investing in low-income communities through a qualified Opportunity Fund:
A temporary deferral of inclusion in taxable income for capital gains reinvested into an Opportunity Fund.
A step-up in basis for capital gains reinvested in an Opportunity Fund.
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.
Check out the map to view which census tracks in Prince George's County are designated as Opportunity Zones.
Click here to learn more about Opportunity Zones or call the EDC at (301) 583-4650.
For more information about Opportunity Zones, please contact John Mason: