Opportunity Zones

Opportunity Zones Provide an Investment Boost for Buyers at RACER Properties 

RACER Trust Opportunity Zone 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 U.S. Environmental Protection Agency has published online resources detailing the federal tax incentives and credits available to help advance brownfields site cleanup and redevelopment activities, including brownfields that are located within qualified Opportunity Zones across the U.S. This U.S. EPA fact sheet contains additional helpful information, as well as links to other resources that include EPA and other websites and links to providers of EPA technical assistance, training and research to brownfields communities.

In addition, the U.S. Department of Housing and Urban Development (HUD) has published Opportunity Zones Toolkits that provide detailed information about Opportunity Zone investments. These resources are designed to guide local economic development plans and strategies to maximize Opportunity Zone investment across the country.

Opportunity Zones Toolkit Vol. I

Opportunity Zones Toolkit Vol. II

In May 2020, The White House Opportunity and Revitalization Council issued an Opportunity Zones Best Practices Report to the President, assessing the program’s progress to date.

The U.S. Economic Development Agency also has resources and guidance to promote Opportunity Zone investments.

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

The IRS has extended several deadlines related to the Opportunity Zones program in response to the COVID-19 pandemic. IRS Notice 2020-39.