What Are Opportunity Zones?
The Opportunity Zone (OZ) incentive provides tax advantages for investors to re-invest unrealized capital gains into dedicated Opportunity Funds.
What’s on the line?
Opportunity Zones have the potential to mobilize an estimated $6.1 trillion in private capital investment towards distressed opportunity zone-communities across the country. If even a fraction of this money could be turned into investment capital for OZs, this policy would become one of the largest community development initiatives in history. But should the effort fail, it will be written-off as yet another tax shelter for wealthy investors.
What’s needed to make the policy a success?
What will be imperative is a common set of guiding principles, along with a measurement framework, to provide Opportunity Funds with the tools to thoughtfully deploy capital into the areas that need it most.
To achieve this impact, collaboration between local communities and the groups that will invest in them—public, private and philanthropic organizations—is critical
as is a national campaign to highlight best practices in OZs and promote similar engagement.