In May, North Carolina’s 252 Opportunity Zones were designated by the State approved by the US Treasury. The new program is intended to attract development to low-income areas by re-investing unrealized capital gains into designated communities. These communities were selected through a combined approach of comparing census tracks with areas with a poverty rate of 20% or higher, or a median household income that is less than 80% of the surrounding area.
To qualify for the program, an investor must self-certify as a Qualified Opportunity Fund – click here for more information. Investments made by Opportunity Funds will receive temporary tax deferral for reinvested capital gains, step-up in basis for capital gains reinvested in an Opportunity Fund, and permanent exclusion from taxable income of long-term capital gains.
The program is still awaiting final implementation processes from the Treasury Department and IRS, but ability to apply for certification as a Qualified Opportunity Fund and therefore utilize this program is expected in late 2018 or early 2019. For more information about North Carolina’s Opportunity Zones click here.BACK TO LATEST NEWS