Federal Opportunity Zones

The City of Manhattan recently had three census tracts designated as Federal Opportunity Zones.  Opportunity Zones are an economic development tool designed to spur economic development by providing tax benefits to people who invest in economically-distressed areas.  The concept was added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.  The benefit to investors is they can defer tax on any prior gains until the earlier of the date on which an investment is sold or exchanged (or December 31, 2026), so long as the capital gain is reinvested in a Qualified Opportunity Fund.  There is also a benefit to the investor if they hold that investment in the Opportunity Fund for at least ten years.

The three areas designed in Manhattan center around Aggieville, east of KSU Campus area, and along the North Campus Corridor (Kimball Avenue north of KSU).  

What is a Qualified Opportunity Fund?

To participate and realize the federal tax incentives, all you need to do is invest in a Qualified Opportunity Fund. A Qualified Opportunity Fund is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property that is located in an Opportunity Zone and that utilizes the investor's gains from a prior investment for funding the Opportunity Fund.    

More Information

The program is still in the development process, but information is available on the IRS FAQ page https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions

View a PDF of the Opportunity Zone map