Opportunity Zones
The Opportunity Zone Program Was Enacted in the December 2017 Tax Cuts and Jobs Act
Qualified Opportunity Zones
The definition of ‘‘qualified census tract’’ for this purpose is generally any census tract that has a poverty rate of at least 20% or that has a median income that does not exceed the higher of 80% of the median income of the metropolitan area or of the statewide median income; governors were able to designate specific Census Tracts to include in the program, up to 25% of the Tracts in the state.
The designations are effective until December 31, 2028. 100% of the Census Tracts on Puerto Rico and the rest of the U.S. Territories are eligible.
Additional Information
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Definition of “Opportunity Fund”
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An Opportunity Fund is any corporation or partnership that invests at least 90% of its assets in Opportunity Zone businesses. The Opportunity Fund must be ‘‘certified’’ under rules to be promulgated by the Treasury Secretary.
Opportunity Zone Funds will be capitalized by investors that sell assets such as stocks, bonds and/or real estate on which capital gains tax is owed; if the cash proceeds from such a sale are deposited into an Opportunity Fund within 180 days, and the investment is held for ten years or more, the investor can completely eliminate capital gains tax on the sale proceeds.
Definition of “Opportunity Zone Business”
To qualify as an Opportunity Zone Business substantially all of the tangible assets of the business must be used in an Opportunity Zone, at least 50% of the gross income earned by the business must be from the active conduct of a business in the Opportunity Zone, and the business can hold only a limited amount of investment assets. With the exception of a limited number of ‘‘sin businesses,’’ almost any type of business will qualify.
CBO Financial focuses on economic, environmental, and societal benefits to empower businesses, nonprofits, and municipal agencies to create jobs, improve infrastructure, and enhance the quality of life in underserved areas. By combining public and private funding sources, CBO Financial ensures that projects in low-income communities can progress efficiently and cost-effectively, driving meaningful revitalization.We’ve financed over $1 billion in high-impact investments nationwide, including $150 million using New Markets Tax Credits awarded to a CBO subsidiary. Backed by powerful funding tools and expertise, you’ll be pushed through to the finish line.
New Markets Tax Credit Programs
Capital Magnet Fund
Bond Guarantee Program
CDFI Certification
Technical Assistance Awards
Financial Assistance Awards
Small Dollar Loan Program
National Community Investment Fund
National Community Investment Fund
Clean Communities Investment Accelerator
Clean Communities Investment Accelerator
Business & Industry
Community Facilities
Rural Energy for America Program
Rural Energy for America Program
Federal Historic Tax Credits