Don't be left behind!

Leave your email to get exclusive discounts

  • Solutions
    • Platform
    • ImpactChat.AI
    • Datapoints
  • Built for
  • #Insights
  • About
    • Solutions
      • Platform
      • ImpactChat.AI
      • Datapoints
    • Built for
    • #Insights
    • About
    Menu
    • Solutions
      • Platform
      • ImpactChat.AI
      • Datapoints
    • Built for
    • #Insights
    • About

    What are Opportunity Zones?

    By Cory Jaeger
    Share to Facebook Share to LinkedIN Share to Twitter
    • Opportunity Zones are communities throughout the U.S. created under the 2017 Tax Cuts and Jobs act that encourage long-term investments in economically-distressed neighborhoods
    • Stimulating underserved economies isn’t the only benefits of Opportunity Zones
    • There are three different ways an investor can benefit from investing in Opportunity Zones

     

    What is an Opportunity Zone?

    An Opportunity Zone is an economically-distressed community as nominated by the U.S. Department of the Treasury; there are 8,760 Qualified Opportunity Zones among the 50 U.S. states. In an effort to stimulate economic development and job creation Opportunity Zones were created under the 2017 Tax Cuts and Jobs Act encouraging long-term investments in low-income neighborhoods. Opportunity Zones may be more abundant than you think and could be just around the corner. Check out this Opportunity Zones map as provided by the U.S. Department of Housing and Urban Development.

     

    Why invest in an Opportunity Zone?

    Opportunity Zones provide a range of infrastructure possibilities to help stimulate the local economy, create new jobs in high poverty areas and generate major societal impact. However, in addition to benefiting the community, Opportunity Zones provide tax incentives for those with capital gains.

     

    What tax incentives can Opportunity Zones provide?

    There are three different tax incentives that investors can claim on their Opportunity Zone funding. 

    • Tax deferral on capital gains until 2026. Investors can invest assets with capital gains into opportunity funds, and defer taxes on those gains until the year 2026 or until the asset is disposed of.
    • Basis step-up of previously earned capital gains. Capital gains held in an opportunity fund for at least five years have an increase of 10% on the original investment. If the investor holds the capital gains in an opportunity fund for at least seven years they see a 15% increase.
    • Income tax exclusion on new gains. Investors pay no taxes on any capital gains for investments held for at least 10 years in an opportunity fund.

     

    At Physis, we aim to shed light on different investments opportunities to best suit you and your clients’ needs. Our Insights keep you up-to-date on the latest trends and news in the ESG Investing space, and our innovative platform allows investors to measure, track, and understand the impact of your investments. Sign up for a demo today!

     

    Sources:

    E.D.A. “Opportunity Zones”

    SouRocket Mortgage “A Guide To Investing In An Opportunity Zone”

    ”Map of Opportunity Zones”


    Explore more Articles
    Finance
    Lifestyle
    Market Movers
    Physis
    Load more

    Physis © 2025 All rights reserved

    WEBSITE NAV
    WEBSITE NAV
    Platform
    ImpactChat.AI
    Datapoints
    Built for
    #Insights
    About
    FAQs
    CONTACT US
    Email us Book a meeting Submit a request
    OFFICES
    HQ: Boston, MA Hoboken, NJ Chicago, IL
    FOLLOW US
    FOLLOW US
    NEWSLETTER
    NEWSLETTER

    Terms of use | Privacy Policy


    Physis Investment Inc. ("Physis") offers investors tools to measure investment performance through extra-financial insights.

    By using this website, you accept our Terms of Use, Privacy Policy, and Disclaimer. Physis cannot guarantee the accuracy of the information, news, and related materials provided to you on this website. The content is provided for informational purposes only, and are not and should not, be construed as financial advice.

    Physis © 2022 All rights reserved

    • No translations available for this page