What are Opportunity Zones?
Created by changes to the tax code in the Tax Cuts and Jobs Act in December 2017, Opporunity Zones are state-nominated, economically depressed communities that are in need of new investment. These investments could, under certain circumstances, be eligable for preferential tax treatment in an effort to help spur economic development. Interested communities submitted recommendations to the Department of Treasury, and each state’s governor was allowed to nominate up to 25% of its low-income community tracts to receive the Opportunity Zone designation. A region will retain its Opportunity Zone status for 10 years.You can learn more from Economic Innovation Group, which led the research effort behind this new national community investment program.
Why Opportunity Zones Might Matter to Your Foundation?
In a 2018 speech in Cincinnati, President Trump obliquely touted the Qualified Opportunity Zones (QOZs) as a feature of the tax overhaul. Afterwards, the legislation became a part of the tax law passed by Congress and signed into law. Foundations can and should play a role in supporting the eco-system that will ensure the success of opportunity zones. Several resources have been listed below to assist foundations seeking to learn more.