Opportunity Zones, created as part of the federal Tax Reform Act of 2017, are a new nationwide tool intended to motivate more capital to be invested in under-served communities across the nation.
Opportunity Zones are defined at the census tract level, and are designated by each State’s Governor. Qualified Opportunity Funds (QOF) provide the mechanism for investment in Opportunity Zones, and any QOF must invest at least 90% of its assets in property or businesses in Opportunity Zones. Investors benefit both from the returns on their investments in QOF and also by being able to shelter capital gains from taxes, by investing them in a QOF. Regulation and policy surrounding Opportunity Zones is very much still in development, at both the federal and state levels, and at the same time interest is rising within the region – from fund managers (private, nonprofit, and public sector), from projects with investment potential, and from potential investors, both individual and institutional.
In response to the fast-paced development of Opportunity Zones, Valley Vision convened a regional Opportunity Zones working group to share up-to-date information about Opportunity Zone developments, and to enhance the likelihood of securing Opportunity Zone investment in the Sacramento Region that benefit the community as a whole. Valley Vision continues to share local, state, and federal information on Opportunity Zones through a monthly newsletter. Click here to subscribe to our newsletter today!
The Opportunity Zone Explorer, created by the Enterprise Community Partners’ Opportunity360 team, is a great tool. Similarly, the LOCUS Opportunity Zone Navigator, by Smart Growth America, is an interactive mapping tool that allows users to search designated census tracts for transit, environmental, economic, housing, and affordability information.
If your organization would like to participate, please contact Valley Vision’s Meg Arnold at firstname.lastname@example.org.