Opportunity Zones

[vc_row][vc_column][vc_column_text]Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.

An Opportunity Zone is an low income community where new investments, under certain conditions, may be eligible for preferential tax treatment. Local Communities qualify as Opportunity Zones if they have been nominated for that designation by the governor of each state and that nomination has been certified by the Secretary of the U.S. Treasury.

The Selection Process was a thoughtful balance between Need (low-income areas) and Opportunity (for revitalization). States works closely with stakeholders in the community, municipalities, counties and local and economic development organizations.

To be eligible the census tract had to be considered low income, meaning at least 20% of median family incomes were no greater than 80% of the surrounding areas. Governors were also permitted to substitute up to 5% of their nominated tracts with those that met a slightly lower need threshold, as long as the tracts were contiguous with other nominated low-income tracts.

The Bipartisan Budget Act of 2018 declared all of Puerto Rico and Opportunity Zone following the devastating effects of Hurricane Maria.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”1696″ img_size=”full” alignment=”center”][/vc_column][/vc_row]