Opportunity Zones Explained
What are
Opportunity Zones
How are they
structured
Where are
they
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Economic development tool designed to encourage growth and job creation
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Underserved communities in which new investments may be eligible for preferential tax treatment
The Economic Innovation Group developed Opportunity Zones in 2015 to address the capital challenges facing many communities across the U.S. and to spur investment and develop in those designated places
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Qualified Opportunity Zones exist across all 50 states, the District of Columbia and five U.S. territories, inclusive of all of Puerto Rico
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There are over 8,700 QOZs designated zones
Market dynamics and real estate fundamentals differ from one QOZ to another, and they do not all offer the same benefits and opportunities
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Businesses and Real Estate property assets located in QOZs are deemed eligible for investment
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A Qualified opportunity Fund ("QOF") must be structured as a corporation or partnership that holds at least 90% of its assets in Qualified Opportunity Zones
Either development or substantial improvement of existing assets (required on a 1:1 basis) within 30 months of acquisition