The first Opportunity Zones have been designated in 15 states and three territories, announced the Treasury Department.
States were required to submit nominations by March 21 or request a 30-day extension to submit nominations. Treasury then had 30 days from the date of submission to designate the nominated zones. It will make future designations as states that have requested an extension complete their submissions and are certified.
Submissions were approved for American Samoa, Arizona, California, Colorado, Georgia, Idaho, Kentucky, Michigan, Mississippi, Nebraska, New Jersey, Oklahoma, Puerto Rico, South Carolina, South Dakota, Vermont, Virgin Islands, and Wisconsin.
Qualified Opportunity Zones retain this designation for 10 years. Investors can defer tax on any prior gains until no later than Dec. 31, 2026, so long as the gain is reinvested in a qualified Opportunity Fund, an investment vehicle organized to make investments in these areas. In addition, if the investor holds the investment in the Opportunity Fund for at least 10 years, the investor would be eligible for an increase in its basis equal to the fair market value of the investment on the date that it is sold, according to Treasury officials.
Read an article about Opportunity Zones by Lori Chatman, president of the Enterprise Community Loan Fund and senior vice president of Enterprise Community Partners, about Opportunity Zones.
