Download our fact sheet to learn more about HBCUs economic and social impact in Opportunity Zones.
What are Opportunity Zones?
Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States.
Their purpose is to spur economic growth and job creation in low-income communities while providing tax benefits to investors.
Opportunity Zones were created under the Tax Cuts and Jobs Act of 2017 (Public Law No. 115-97). Thousands of low-income communities in all 50 states, the District of Columbia, and five U.S. territories are designated as Qualified Opportunity Zones.
Taxpayers can invest in these zones through Qualified Opportunity Funds.Their purpose is to spur economic growth and job creation in low-income communities while providing tax benefits to investors..
3 Notable Tax Benefits of Opportunity Zones
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Investors can place existing assets with accumulated capital gains into Opportunity Funds. Those existing capital gains are not taxed until the end of 2026 or when the asset is disposed of.
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For capital gains placed in Opportunity Funds for at least 5 years, investors’ basis on the original investment increases by 10 percent. If invested for at least 7 years, investors’ basis on the original investment increases by 15 percent.
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For investments held for at least 10 years, investors pay no taxes on any capital gains produced through their investment in Opportunity Funds (the investment vehicle that invests in Opportunity Zones).
Source: Tax Policy Center