The federal tax bill passed on Dec. 18, 2017, included the Opportunity Zone program, which gave states the chance to examine census tracts and nominate low-income areas with potential for long-term investment to be targeted for a tax-incentive program.
After being designated by the U.S. Department of Treasury, Ohio’s 320 Opportunity Zones began generating attention from investors interested in taking advantage of their favorable tax benefits. Meanwhile, communities, potential project owners, and economic development organizations are eager to provide opportunities to investors.
Opportunity Zones, created in the 2017 Tax Cut and Jobs Act, encourage long-term investments in low-income urban and rural areas nationwide.
A few facts:
- Working with the U.S. Treasury, Ohio established 320* Opportunity Zones throughout 73 of its 88 counties.
- The zones were selected based on submissions by local government officials and nonprofit and economic development organizations.
- Long-term investments in designated opportunity zones provide tax benefits for investors to maximize unrealized capital gains.
- In Ohio, Opportunity Zones are available in large cities, small communities, and Appalachian counties.
* Ohio recommended 320 census tracts (25 percent of 1,280 eligible tracts), its full allocation.