An Opportunity Zone is an economically distressed community which needs funds to revitalize its businesses and its infrastructure. Investors who invest into an Opportunity Zone are entitled to capital gains tax incentives, which means you can keep a couple more bucks in your wallet while doing some good for the community.
Opportunity Funds are new private sector investment vehicles that invest at least 90 percent of their capital in qualifying assets in Opportunity Zones. U.S. investors currently hold trillions of dollars in unrealized capital gains in stocks and mutual funds alone— a significant untapped resource for economic development. Funds will enable a broad array of investors to pool their resources in Opportunity Zones, increasing the scale of investments going to underserved areas.
An investor can defer capital gains taxes until 2026 by rolling their gains directly over into an Opportunity Fund. The deferred capital gains liability is reduced by up to 15% if the investment is held for 7 years. Capital gains on investments made through an Opportunity Fund accrue tax-free provided the investor stays invested in the fund for over 10 years.
The Council of Development Finance Agencies has a robust collection of Opportunity Zone resources and educational materials that will help get you started.
The official source for a list of QOZ tracts.
A useful dataset containing investment history and social change indicators for QOZ tracts nationwide.