Opportunity Zones offer monetary incentives in communities like Aurora to investors so they can come in and build, all while cultivating economic growth and adding to the job market.
This incentive was made possible by the Investing in Opportunities Act, which amended the Internal Revenue Code to authorize and assign opportunity zones to sections of a community that are of lower income.
Opportunity Zones offer three tax incentives to investors:
- Temporary deferral: Investors can defer capital gains taxes until 2026 by keeping unrealized gains (profit from investments that exist on paper, but have yet to be claimed) in an Opportunity Fund
- Reduction: If the Opportunity Fund investment is held for 5 years, the original amount of capital gains that an investor has to pay deferred taxes for is reduced by 10%. If this fund is held for a total of 7 years, it is reduced by another 5%, for a total reduction of 15%.
- Exemption: Any capital gains on investments made through an Opportunity Fund accrue tax-free if they are held for at least 10 years by the investor.
The U.S. Department of the Treasury publishes a list of Opportunity Zones Resources.
The IRS has also published a list of frequently asked questions, where you can obtain info about eligibility, locations, and more.
Below is a map illustrating the eligible Opportunity Zones in Aurora. You can find an interactive Opportunity Zones map here, where you can do your own location search and zoom in on eligible zones.