Opportunity Zones Provide an Investment Boost for Buyers at RACER Properties
Several RACER Trust properties are certified as a federal “Opportunity Zone” under the Tax Cuts and Jobs Act of 2017. Opportunity Zones provide substantial incentives to spur private investment in development and job creation. The benefit to our buyers is preferential tax treatment for private investment in development.
The Internal Revenue Service has published a detailed list of Frequently Asked Questions about the Opportunity Zone program.
According to Treasury.gov:
“Qualified Opportunity Zones retain this designation for 10 years. Investors can defer tax on any prior gains until no later than December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund, an investment vehicle organized to make investments in Qualified Opportunity Zones. In addition, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in its basis equal to the fair market value of the investment on the date that it is sold.” Rules and regulations regarding the Opportunity Zone program can be found at https://www.irs.gov/pub/irs-drop/rp-18-16.pdf.
The Treasury Department issued its second set of Opportunity Zones guidance in April 2019.
A news release announcing the second set of guidance can be found at https://home.treasury.gov/news/press-releases/sm660#.XOWzYDoCjgo.mailto.
The full guidance document is at https://www.irs.gov/pub/irs-drop/reg-120186-18-nprm.pdf
RACER Trust Opportunity Zone Properties
Flint & Genesee Chamber Publishes Opportunity Zone Guide
The Flint & Genesee Chamber of Commerce has published an Opportunity Zone Prospectus, a guide to the available Opportunity Zone properties in the community. To view and download this resource, please click the link below.
Flint & Genesee County Opportunity Zone Prospectus
U.S. EDA Announces Opportunity Zone Resource
The U.S. Economic Development Agency (EDA), a bureau within the U.S. Department of Commerce, has produced an online Opportunity Zone resource for economic development stakeholders and others to help foster job creation and attract private investment to support development in economically distressed areas across the United States.
"EDA is encouraging its economic development partners to think of Opportunity Zone investment as a new arrow in their quiver to not only enhance ROI for business interests, but also to encourage the public/private partnerships needed to drive private investment to distressed areas,:" the agency said in an announcing the online resource.
To view the EDA’s announcement, please click here.
To visit the EDA’s Opportunity Zones website, please click here.