The Opportunity Zones (OZ) program is a community development tool that provides tax incentives to investors to fund businesses in underserved communities.
- 25%of a state’s low-income community population census tracts can be designated as qualified OZs.
- Governors are responsible for designating OZs and have 90-days from enactment of H.R.1.
- The OZ incentive is a complementary tool to NMTC.
For more details see Novogradac Opportunity Zones Summary
Steps for Investment Implementation:
- Governors will identify the low-income areas in their states that will be designated as OZs.
- The Treasury Department will develop the rules that determine how Qualified OZs are certified.
On February 8, 2018, the IRS published Revenue Procedure 2018-16 providing guidance to Governors on how certain population census tracts may be designated as Qualified OZs.