Opportunity Zones (OZ) were established as part of the Tax Cuts and Jobs Act of 2017 aimed at spurring economic development and job creation in distressed communities throughout the country. The Act allows for Qualified Opportunity Funds, which are private sector investment vehicles that invest at least 90 percent of eligible capital in Opportunity Zones. Investors in a Qualified Opportunity Fund defer all, or part, of their tax gains either when the investment is sold or exchanged at a gain, or by Dec. 31, 2026. If the investment is held for a full 10 years, the opportunity zone tax reduction is 15%. The concept behind Opportunity Zones is that the longer the investment is held, the lighter the tax burden.
The IRS published a list of more than 8,700 census tracts designated by the Secretary of the Treasury as qualified opportunity zones in the 50 states and U.S. territories: https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx. There are 60+ tracts in Miami-Dade County that qualify as OZs and 20-some tracts located in the City of Miami. In order to see the OZs within City of Miami limits, please use the following link:
Opportunity Zone Map
For the most common questions and answers on the OZ program in general, please visit the IRS’ website: https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions