Insights from Primior
Opportunity Zones Offer Attractive Option for the Right Investor
The Opportunity Zone program was created by the 2017 Tax Cuts & Jobs Act to revitalize economically distressed communities through long-term private investment as opposed to taxpayer dollars. Opportunity Zones have now been designated in all 50 U.S. states, the District of Columbia and five U.S. possessions.
Currently, there are 879 Opportunity Zones in the state of California. A study by CA FWD and Golden State Opportunity indicates a potential for $745 million to $1.2 billion in new economic activity in Opportunity Zones this year.
Investors in a Qualified Opportunity Zone can benefit from substantial federal capital gains tax incentives available exclusively through the program. Moreover, in comparison to other programs that encourage private investment in low-income areas through tax advantages, the Opportunity Zone program is less restrictive, costly or reliant upon government agencies.
