Special economic development zones created as part of the Tax Cuts and Jobs Act of 2017. Individuals and companies that invest in qualified opportunity zones enjoy special tax treatment to encourage investment in these distressed areas within the United States. The purpose of the creation of these zones, and the corresponding tax benefits of doing so, is meant to spur job growth and economic activity in these areas.
Individuals and companies that invest in opportunity zones can choose to temporarily defer tax on capital gains if those gains are invested in a qualified opportunity zone. For more information on the benefits and qualification for this program, view the IRS’ Opportunity Zones Facts Sheet.