Opportunity Zones are designated census tracts that qualify for favorable tax treatment for certain investments in Qualified Opportunity Funds with the intent to spur economic development.
An Opportunity Fund is an investment strategy created as part of the Tax Cuts and Jobs Act of 2017 to provide an incentive for investment in Opportunity Zones.
Opportunity Funds provide a three-fold investment benefit; the deferral of capital gains tax payment, a reduction of up to 15% in the basis of the gains invested and a possible exclusion of tax Opportunity Fund profits.