OPPORTUNITY ZONES

As described by the Florida Department of Economic Opportunity, the Opportunity Zone Program aims to foster economic development and job creation in economically distressed communities.  It was created by the Federal Tax Cuts and Jobs Act of 2017 to encourage businesses, developers and financial institutions to invest long-term capital in low-income census tract areas.  These areas were designated as Qualified Opportunity Zones by the U.S. Department of Treasury in June 2018.  The Treasury Department has approved a total of 8,760 Qualified Opportunity Zones, which are in all 50 states, five territories and the District of Columbia.

 

Investments are made in Opportunity Zones through U.S. Treasury Qualified Opportunity Zone Funds, which must invest over 90 percent of their assets in Qualified Opportunity Zone properties and businesses.  Qualified Opportunity Zone Funds attract investors through possible tax benefits.  Tax benefits can accrue once unrealized capital gains from other investments are rolled into Qualified Opportunity Zone Funds.  Benefits include the following:

 

Taxes are deferred on capital gains rolled into Qualified Opportunity Zone Funds and the original tax bill through December 31, 2026 or the sale of the Opportunity Zone investment, whichever is earlier;

 

Taxes are reduced on capital gains held in Qualified Opportunity Zone Funds for certain lengths of time; for investments held for 5-years, the cost basis for tax purposes is increased by 10% and for investments held for 7 years, the cost basis increases an additional 5%;

 

The rolled over capital gain appreciates tax-free if the investment in the Qualified Opportunity Zone Fund is held for 10 years or longer.

 

A total of 427 Qualified Opportunity Zones are designated in Florida and located in every county in the state, stretching from the Panhandle through the Keys.  Governors could nominate up to 25 percent of their state’s eligible tracts to receive the designation.  The nomination process in Florida included reviewing over 1,200 recommendations submitted by local governments, nonprofits, developers, investors and others.  Final nominations were based on a comprehensive review and detailed statistical analysis of relevant population, poverty and unemployment rates and other economic indicators.

The Apalachee Region has 17 Opportunity Zones,
8 of which are located in Leon County. The remaining 9 are situated in coastal and inland areas along key transportation corridors that are ready for development.

 

The Opportunity Zone Program does NOT include tax incentives or rebates for homeowners who live within Opportunity Zones.

Source:  Florida Department of Economic Opportunity:  www.floridajobs.org/business-growth-and-partnerships/for-businesses-and-entrepreneurs/business-resource/opportunity-zones

ozmap.png

Designated Opportunity Zones in the Apalachee Region and immediate surrounding areas. 

Click on the map above to access the interactive Opportunity Zone map. 

Map Source:  https://www.novoco.com/sites/default/files/mapbox/opzone/gozone_map_17.html

  • Facebook Social Icon

      2507 Callaway Road, Suite 200, Tallahassee, FL 32303                         Phone: (850) 488-6211                        Fax: (850) 488-1616       

Apalachee Regional Planning Council is committed to ensuring that this website is accessible to everyone. ARPC strives to adhere to the accepted guidelines and standards for accessibility and usability. To that end we have recently reviewed our entire website to identify non-compliant elements
or documents and to bring them into compliance. We are continuing this process to ensure that the site remains up-to-date regarding updated guidelines. We are continually seeking solutions that will bring all areas of the site up to the same level of overall web accessibility.

In the meantime, should you experience any difficulty in accessing the ARPC website, please contact MFranklin@arpc.org