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.
