About the Opportunity Zones Incentive
Included in the Tax Cuts and Jobs Act (January 1, 2018) is a new tax incentive intended to help distressed urban and rural communities. These communities are experiencing uneven economic development patterns which create pockets of disinvestment and unemployment.
The Investing in Opportunity Act (IIOA) aims to correct economic imbalances and improve economic outcomes of distressed communities by incentivizing investors - through the temporary deferral of capital gains taxes - to make equity investments in distressed areas.
These investments must be made in the low-income census tracts that have received official designation from the Governor.
The Opportunity Zone program was created as part of the Tax Cuts and Jobs Act and is a new tax incentive. Opportunity Zones are low-income census tracts selected by each state’s governor and confirmed by the U.S. Department of Treasury. The aim of Opportunity Zones is to improve economic outcomes of these distressed communities by incentivizing investors through the temporary deferral of capital gains taxes. Read More
How Do Opportunity Zones Work?
Here is a brief overview of the Opportunity Zone program from various perspectives… Read More
Opportunity Zone Funds
We are still waiting on guidelines for how Opportunity Zone funds will be set up. Funds can be set up by a variety of entities including large financial institutions, individuals with capital gains to invest, or by a project developer seeking Opportunity Zone investment in a specific project. Read More
Download PDF version of the Opportunity Zone Map
Frequent Questions on the Program
When will funds be available? Guidelines for implementation of the Opportunity Zone program are still being finalized by the federal agencies overseeing the program. Opportunity Zone funding will not be available until the guidelines are finalized and the program is fully in place.
Who makes the decision of where funds and which projects will be funded in the Opportunity Zone? Opportunity Zone investments are made at the sole discretion of Opportunity Zone investment funds and their investors. Opportunity Zone investments are not administered or overseen by SLDC.
Who do I contact for more information? If you would like more information about the Opportunity Zone program or investment opportunities within the City of St. Louis’ Opportunity Zones, please contact Matt Bauer at firstname.lastname@example.org. Make sure to refer back to this page for updates on the Opportunity Zone program.
External Opportunity Zone Links
- State of Missouri: Opportunity Zone Program Details
- Economic Innovation Group: A new national community investment program that connects private capital with low-income communities across America.
- Novogradac & Company: Opportunity Zone Resource Center
This is currently our only source of information directly from the department overseeing the program
Novogradac is at the forefront of providing guidance to potential Opportunity Zone funds and investors. I have also attached slides from one of their presentations, which should be helpful.
Economic Innovation Group is the non-profit organization that was the proponent of the policy