What are Opportunity Zones?
Opportunity Zones are a new community development program established by Congress as a part of the Tax Cuts and Jobs Act of 2017, they are designed to encourage long-term private investments in low-income communities. This program provides a federal tax incentive for taxpayers who reinvest unrealized capital gains into "Opportunity Funds," which are specialized vehicles dedicated to investing in low-income areas called "Opportunity Zones."
The zones themselves are to be comprised of low-income community census tracts and designated by governors in every state. South Carolina designated 25 percent of qualifying census tracts as an Opportunity Zone. Qualifying Zones are based on the 2011-2015 American Community Survey.
Total Tracts in SC:
Eligible, Low-Income Community Tracts:
was allowed to select
25% of 538
Maximum number of SC tracts approved:
Low-income Community tracts approved:
Of the 135 tracts, number of eligible Contiguous Tracts approved:
Number of tracts approved that are within a five mile radius of the boundary of a Census Designated Place with a 2015 population of greater than or equal to 5,000 persons:
Number of tracts approved that are in a Metropolitan Area as Designated by the Office of Management and Budget in their 2017 update:
Number of tracts approved that have their centroid within the boundary of a Census Designated Place greater than or equal to 5,000 persons:
- Promoting economic vitality parts of the state that have not shared in the general prosperity over the past few years
- Funding the development of workforce and affordable housing in areas with escalating prices and inventory shortages
- Funding new infrastructure to support population and economic growth
- Investing in startup businesses who have potential for rapid increases in scale
- Upgrading the capability of existing underutilized assets through capital improvement investments
How to Use this Map
This is an interactive map.
Mapping and data tools are available to aid in identifying census tracts for Opportunity Zones - click on a tract below to find more.
What are the incentives that
encourage long-term investment in low-income communities?
The Opportunity Zones program offers investors the following incentives for putting their capital to work in low-income communities:
- Investors can roll existing capital gains into Opportunity Funds with no up-front tax bill.
- A 5 year holding increases the rolled-over capital gains basis by 10%
- A 7 year holding increases the rolled-over capital gain investment basis 5% for a total of 15%
- Investors can defer their original tax bill until December 31, 2026 at the latest, or until they sell their Opportunity Fund investments, if earlier.
- Opportunity fund investments held in the fund for at least 10 years are not taxed for capital gains.
Federal Government Resources:
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