Opportunity Zones Slowly Beginning to Gather Company Investments
26 Dec 2019
The federal government’s Opportunity Zone program is beginning to gather investments in operating companies in markets across the United States. Opportunity Zones are a federal government program that provides capital gains tax relief for taxpayers who invest in real estate or qualified companies in one of 8700 certified sites in all fifty states and US territories.
The accounting firm Novogradac reports that the 287 Opportunity Zone funds they are tracking represent $64.9 billion in community development investing capacity. Furthermore, they reported that Qualified Opportunity Funds seeking capital from third-party investors is now at $3.17 billion based upon a survey of the 122 funds voluntarily reporting their investments. The investments target residential, commercial, operating businesses, hospitality and renewable energy. Residential remains the prime known investment target for these Qualified Opportunity Funds but most of the funds provide a mix of investment categories.