Buried within the Tax Cuts and Jobs Act is a provision creating “Opportunity Zones.” While this provision has not been highly promoted, the possibilities it provides should not be overlooked. Municipalities apply to be designated as Opportunity Zones where investors are given tax incentives for re-investing their unrealized capital gains into Opportunity Funds dedicated to investing into the Opportunity Zones. These Opportunity Zones have the potential to revitalize towns and neighborhoods throughout the country while allowing for investors to avoid capital gains taxes as described in a recent New York Times piece.
The deadline to apply for designation of an Opportunity Zone is fast approaching. In Massachusetts Governor Baker’s Office is currently receiving applications. Applications need to be in by March 22 in order for municipalities to be considered. The list of eligible municipalities can be found here. The application for Massachusetts is not lengthy and eligible municipalities can obtain more information about the application process at this Mass.gov link.