WHAT ARE THE INCENTIVES?

DEFERRAL

A temporary deferral of inclusion in taxable income for capital gains reinvested into and Opportunity Zone or Fund. The deferred gain must be recognized on the earlier date on which the opportunity zone investment disposed of or by December 31, 2026.

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REDUCTION

A step-up in basis for capital gains reinvested in an Opportunity Zone or Fund. the basis increased by 10% if the investment in the Opportunity Fund is held by the taxpayer for at least 5 years and by an additional 5% if held for at least 7 years, thereby excluding up to 15% of the original gain from taxation. 

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ELIMINATION

A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years. This exclusion only applies to gains accrued after investment in a Qualified Opportunity Fund.