Opportunity Zones
What are Opportunity Zones?
Opportunity Zones are a community development program established by the Tax Cut and Jobs Act of 2017 to encourage long-term investment in low-income and urban communities. The program provides tax benefits to holders of capital gains if they invest return in designated zones.
Where are Opportunity Zones?
There are 128 designated Opportunity Zones throughout Minnesota. The City of Lake City is home to the only designated Opportunity Zone in Wabasha County, Census Tract 27157490300 (pictured above). This area includes U.S. Highways 61 and 63, the entirety of downtown Lake City, a portion of the Jewel Golf Course and Housing Development, and 106 acres of City-owned land available for development.
What is an Opportunity Fund?
An Opportunity Fund is an investment vehicle organized as a corporation or partnership for investing in Opportunity Zones. To qualify for incentives, investments must be made through a qualified Fund.
Why Invest in Opportunity Funds?
An Opportunity Fund is an investment vehicle organized as a corporation or partnership for investing in Opportunity Zones. To qualify for incentives, investments must be made through a qualified Fund.
Resources
- MN DEED Resource Page
- Economic Development in the New Tax Law
- Form 8949 and Instructions
- Investing in Qualified Opportunity Funds – Regulations
- IRS Opportunity Fund Frequently Asked Questions
- Opportunity Zones Resources – Department of Treasury, Community Development and Financial Institution Fund
- Revenue Procedure – Designation of Opportunity Funds
- Revenue Ruling: 26 USC 1440Z-2.–Special Rules for Capital Gains Invested in Opportunity Funds