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.
Opportunity Zone Grant Fund
The South Carolina Department of Commerce has established The Opportunity Zone Grant Fund under which South Carolina governmental entities (counties and/or municipalities) may request funding to offset the costs of obtaining an outside vendor to assist in the structuring of a competitive Opportunity Zone Prospectus. The program also allows the third party vendor to assist the governmental entity in determining the best project to pursue.
Should any South Carolina governmental entity have an interest in applying for funding assistance, they must complete the application in full and attach a copy of the proposal from the vendor that the entity would like to employ. It is the responsibility of the applicant to follow their individual procurement process.
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.
Highlighted tracts were approved by the U.S. Department of Treasury.
*This address locator is provided as a service to help potential investors determine the likelihood that a particular address falls within an Opportunity Zone. It is not meant to provide a definitive judgement on the qualification of a particular address and should not be used as such. It is advised that all prospective participants in the Opportunity Zone program consult the County of record for a more detailed analysis of the parcel in question as well as evaluate the regulations put forth by the U.S. Department of the Treasury.
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.
- Read the recently released Proposed Opportunity Zones Regulations to learn the parameters of the program, including what gains qualify for deferral, which taxpayers and investments are eligible and other guidance.
Federal Government Resources:
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