The Tax Cuts and Jobs Act of 2017 contains a new tax incentive for investments in low-income census tracts designated as Opportunity Zones.
Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act to encourage long-term investments in low-income urban and rural communities. Private investment vehicles that place 90 percent or more of their funds into an Opportunity Zone can earn tax relief on the capital gains generated through those investments. Tax benefits increase the longer investments are in place.
The Treasury Department and the Internal Revenue Service recently issued proposed regulations and other published guidance for the new Opportunity Zone tax incentive.
Each state nominated a minimum of 25 total eligible census tracts but no more than 25% of the total number of eligible census tracts within the state. Below are the approved Idaho Opportunity Zone tracts:
|Applicant Name||County||Census Tract||Type|
|City of Boise||Ada||16001002000||LIC|
|Nez Perce Tribe||Clearwater||16035940000||CONTIGUOUS|
|Twin Falls||Twin Falls||16083001100||LIC|
DISCLAIMER: The U.S. Department of the Treasury has not completed its rulemaking on the Opportunity Zone program. All communications, documents, and maps provided by the Idaho Department of Commerce are for planning purposes only and may be subject to change based upon the Department of the Treasury’s final rule.