Opportunity Zone designations are based on census tracts, with a total of 8,764 zones established nationwide. These zones were created to stimulate economic development and job creation in distressed communities by offering tax incentives to investors.
The U.S. Department of the Treasury initially identified potential Opportunity Zone census tracts. Subsequently, governors of each state had the authority to nominate up to 25% of these tracts for designation, ensuring that the selected areas aligned with local economic development goals.
Understanding the specific locations of these zones is crucial for investors. To assist with this, Novogradac offers an interactive Opportunity Zone Map. This tool allows users to zoom in to street level or input a specific address to determine if a property is within a designated Opportunity Zone.
It’s important to note that state conformity with federal Opportunity Zone provisions can impact the availability of state-level tax incentives. Investors should be aware of their state’s stance on Opportunity Zones to fully understand potential tax benefits or obligations.
View the list of states that conform to federal Opportunity Zone provisions for corporate income tax.
View the list of states that conform to federal Opportunity Zone provisions for personal income tax.
Investing in Opportunity Zones can offer significant tax advantages, including deferral and potential elimination of capital gains taxes. By directing capital into these zones, investors not only benefit financially but also contribute to the revitalization of underserved communities.