Opportunity Zones


What is an Opportunity Zone?
An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation authority to the Internal Revenue Service.

How do Opportunity Zones spur economic development?
Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains until the earlier of the date on which an investment is sold or exchanged, or December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in basis equal to the fair market value of the investment on the date that the investment is sold or exchanged.

See more FAQs on the IRS Website – https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions

Also see MN DEED website for information – https://mn.gov/deed/business/financing-business/tax-credits/opp-zones/

Opportunity Zones 101: First Steps for Local Communities – http://mhponline.org/blog/connect/884-opportunity-zones-101-first-steps-for-local-communities

See a Map of designated Census Tracts for Opportunity Zones – https://mn.gov/deed/business/financing-business/tax-credits/opp-zones/census-opp-zone-tracts.jsp

East Central Regional Development Commission will be offering more information when it becomes available.

Introduction to Opportunity Zones and Funding for Minnesota Housing Partnership – http://www.mhponline.org/images/Opportunity-Zones-Introduction-for-MHP.pdf