Opportunity Zones provide investment incentive for low-income areas

Washington’s new Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017. The goal of the program is to encourage long-term investments in low-income urban and rural communities nationwide. Earlier this year Governor Inslee designated 139 census tracks as Opportunity Zones in 36 counties across Washington State to help spur economic development in these regions.

The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones. The U.S. Department of the Treasury and the IRS released proposed regulations on Opportunity Zones designed to incentivize investment in American communities. The Treasury Department plans on issuing additional guidance before the end of the year after notice and comment. AWC will continue to monitor the rulemaking process as it further develops.

More information on Washington’s Opportunity Zones can be found on the Washington State Department of Commerce website.