Opportunity Zones Resource Center
Overview
Created as part of the Tax Cuts and Jobs Act, Opportunity Zones are a federal economic development tool aiming to improve the outcomes of distressed communities around the country. Opportunity Zones are low-income census tracts that offer tax incentives to groups who invest and hold their capital gains in Zone assets or property. By investing in Opportunity Zones, investors stand to gain a temporary deferral on their capital gains taxes if they hold their investments for at least 5 years, and a permanent exclusion from a tax on capital gains from the Opportunity Zones investments if the investments are held for 10 years.
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-Understanding Opportunity Zones
Opportunity Zones, created as a result of the passage of the Tax Cuts and Jobs Act, are low-income census tracts eligible to use tax incentives to encourage long-term investments in Zone assets and property. Opportunity Zones are designated as such by the governor or chief executive of a given state, district, or territory. All 50 states, the District of Columbia, and U.S. territories are eligible to designate Opportunity Zones.
Read more about Opportunity Zones
Tax Incentives for Opportunity Zones: In BriefMembers only 
This CRS report briefly describes what census tracts have been designated as an OZ, what types of entities can are eligible as QOFs, the tax benefits of investments in QOFs, and what economic effects can be expected from OZ tax incentives.
-Resources
View all Opportunity Zones Resources
-Official Treasury Designations
The U.S. Department of the Treasury has approved Opportunity Zones in every state and territory. Click on any of the links below to see where Opportunity Zones are located. A
comprehensive list of all designated Opportunity Zones is available from the CDFI Fund.
-Rules and Regulations
The U.S. Department of the Treasury continues to work through the process of codifying the regulatory framework for the Opportunity Zones incentive. CDFA will continue to update this page as additional tranches of guidance and proposed regulations are released.
Second Tranche of Proposed Regulations
The second tranche of proposed regulations, released on April 17, 2019, offer answers and clarity to a number of questions that arose following the release of the first tranche of Opportunity Zones guidance. The second tranche of IRS guidance primarily addresses the tax treatment and issues related to:
- Operating businesses in Opportunity Zones;
- Land and land leases;
- The definition of original use and building vacancy;
- Opportunity Fund assets and investments.
View the Second Tranche of Proposed Regulations
View Second Tranche Highlights from EIG
View Second Tranche Highlights from Opportunity Alabama
View Second Tranche Highlights from KPMG
View Second Tranche Highlights from Novogradac (Part 1)
View Second Tranche Highlights from Novogradac (Part 2)
View Second Tranche Highlights from Ballard Spahr
First Tranche of Proposed Regulations
The U.S. Department of the Treasury has released regulatory guidance on
Opportunity Zones and
Opportunity Funds. These regulatory proposals help to clarify how investors will engage in Opportunity Zones and provide more framework for communities to understand the types of businesses and real estate projects that are eligible for investment.
The regulatory proposals address several key areas, including:
- The requirements that must be met by a taxpayer to defer gains by investing in an Opportunity Fund;
- The rules permitting a corporation or partnership to self certify;
- The rules regarding the requirements that must be met by a corporation or partnership to qualify as an Opportunity Fund.
Additionally, the IRS has released a revenue ruling addressing:
- The application to real property of the "original use" requirement in section 1400Z-2(d)(2)(D)(i)(II), and;
- The "substantial improvement" requirement in section 1400Z-2(d)(2)(D)(i)(II) and 1400Z-2(d)(2)(D)(ii).
View the First Tranche Proposed Regulations
View the Revenue Ruling
-Opportunity Funds Resources
Final Opportunity Zones Regulations
This document contains final regulations governing the extent to which taxpayers may elect the Federal income tax benefits provided by section 1400Z-2 of the Internal Revenue Code (Code) with respect to certain equity interests in a qualified opportunity fund (QOF).
Notice of Proposed Rulemaking Community Reinvestment Act
On December 13, 2019, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) announced a proposal to modernize the agencies’ regulations under the Community Reinvestment Act (CRA) that have not been substantively updated for nearly 25 years. These proposed regulations will have a 60-day public comment period.
Opportunity Zone Reporting & Reform Act of 2019 - Detailed SummaryMembers only 
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The proposal requires information reporting from both Opportunity Funds and their investors. QOFs are required to report identifying information, amount and composition of assets, names and taxpayer identification numbers of investors, the amounts and dates of their investments, which zones the funds have invested in, and a variety of identifying information about the type of investments made.
View more Oppportunity Funds Resources
-Opportunity Zones Resources
Opportunity Zones: A Place-Based Incentive for Investment in Low-Income Communities
Section 1400Z,2 of the Tax Cuts and Jobs Act of 2017 created a new place-based tax incentive intended to spur economic development and job creation in distressed communities designated as “Opportunity Zones.” Although Opportunity Zones (OZs) are the latest place-based tax incentive, they also represent a sweeping expansion of the approach— both in terms of the potential tax benefits being provided and the huge scale of the geography now covered for reduced income taxes for investors.
Opportunity Virginia Annual Report 2019-2020
Opportunity Virginia's 2019-2020 Annual Report discusses their goals and strategies to ensure that VA Opportunity Zones attract investments that will make inclusive and equitable economic growth a priority alongside the market-driven capital flows.
Applying the Opportunity Zones Program in the Wake of the COVID-19 PandemicMembers only Login
In light of the unprecedented economic challenges presented by the COVID-19 outbreak, taxpayers with short-term or long-term capital gain income generated in 2019, or in early 2020, can use the OZ program to invest the qualified gains in a QOF for a period of time. As some investors reevaluate their commitments to qualified opportunity zones ("QOZs") in light of the COVID-19 global pandemic, they may enjoy some level of favorable tax treatment in 2020 if they decide to liquidate their capital from the funds.
View more Oppportunity Zones Resources
-Case Studies
-Mapping Tools
-Headlines
-Publications
-Training Courses
CDFA Virtual Summer School
August 3-13, 2020
Daily: 12:00 PM - 5:00 PM Eastern
CDFA Virtual Summer School is a two-week-long series of courses presented by the CDFA Training Institute. These courses qualify for the CDFA Training Institute's Development Finance Certified Professional (DFCP) Program. Participants may register for up to four courses during CDFA Virtual Summer School. Complete three courses, and you will have fulfilled half of the requirements for the DFCP Program.
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-Webcasts
Opportunity Zones: A Place-Based Incentive for Investment in Low-Income Communities
Section 1400Z,2 of the Tax Cuts and Jobs Act of 2017 created a new place-based tax incentive intended to spur economic development and job creation in distressed communities designated as “Opportunity Zones.” Although Opportunity Zones (OZs) are the latest place-based tax incentive, they also represent a sweeping expansion of the approach— both in terms of the potential tax benefits being provided and the huge scale of the geography now covered for reduced income taxes for investors.
Opportunity Virginia Annual Report 2019-2020
Opportunity Virginia's 2019-2020 Annual Report discusses their goals and strategies to ensure that VA Opportunity Zones attract investments that will make inclusive and equitable economic growth a priority alongside the market-driven capital flows.
View More Webcasts