According to the IRS, "Qualified Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act. These zones are designed to spur economic development and job creation in distressed communities throughout the country and U.S. possessions by providing tax benefits to investors who invest eligible capital into these communities. Taxpayers may defer tax on eligible capital gains by making an appropriate investment in a Qualified Opportunity Fund and meeting other requirements."
The law would open the door for corporations or investers to defer taxes on specific capital gains after reinvesting them into an Opportunity Zone fund. Investments held for enough time would receive additional tax benefits and ultimately encourage investment in the long-term. The Urban Institute notes that over 50% of tribal census tracts are eligible for Opportunity Zone designation.
Ultimately, Opportunity Zones have the opportunity to attract more investment to tribal areas and encourage development.
Click here to view Opportunity Zone resources.
