Opportunity Zone Program
Located in the heart of Palm Coast, our Qualified Opportunity Zone, covers 5.5 square miles, including the city's designated downtown district, Palm Coast Town Center.
Our approved Opportunity Zone offers the opportunity to invest in their communities and revitalize downtown districts to boost local entrepreneurship, establish specialized funds that target rural development challenges, commercialize technology around local knowledge centers, and more. For investors, the program offers tax incentives to citizens who re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing in these specially designated census tracts. The program provides deferral and reduction of capital gains taxes when the gain is invested in a Qualified Opportunity Fund and maintained for at least five years. Additional tax incentives are available for investments held for periods of seven and 10 years. Learn more about opportunity zones at the links below.
What the Program is:
The Opportunity Zone Program is a federal program and aims to foster economic development and job creation in economically distressed communities. It was created by the Federal Tax Cuts and Jobs Act of 2017 to encourage business, developers and financial institutions to invest long-term capital in low-income census tract areas. These areas were designated as Qualified Opportunity Zones by the U.S. Department of Treasury in June 2018. Treasury has approved 8,760 Qualified Opportunity Zones, which are in all 50 stated, five territories and the District of Columbia.
What the Program is not:
The Opportunity Zone Program is not a residential program for home buyers, sellers or owners. It does NOT include tax incentives or rebates for homeowners who.
DEO does not track individual properties bought or for same within zones. This federal and not a state of Florida program.
How it Works
Investments are made in Opportunity Zones through U.S. Treasury Qualified Opportunity Zone Funds, which must invest over 90 percent of their assets in Qualified Opportunity Zone properties and businesses. Qualified Opportunity Zone Funds attract investors through possible tax benefits. Tax benefits can accrue once unrealized capital gains from other investments are rolled into Qualified Opportunity Zone Funds.
Three tax benefits
The Opportunity Zone Program provides three tax benefits for investing unrealized capital gains in Opportunity Zones and investors can take advantage of one or more of the benefits.
Three tax benefits
The Opportunity Zone Program provides three tax benefits for investing unrealized capital gains in Opportunity Zones and investors can take advantage of one or more of the benefits.
➔ Temporary deferral of taxes on previously earned capital gains Investors can place existing assets with accumulated capital gains into Opportunity Zone Funds. Those existing capital gains are not taxed until the end of 2026 or when the asses is disposed of.
➔ Basis step-up of previously earned capital gains invested. For capital gains placed in Opportunity Funds for at least 5 years, investors' basis on the original investment increases by 10 percent. If invested for at least 7 years, investors' basis on the original investment increases by 15 percent.
➔ Permanent exclusion of taxable income on new gains. For investments held for at least 10 years, investors pay no taxes on any capital gains produced through their investment in Palm Coast Opportunity Zone, Tract 12035060213.
Palm Coast opportunity Zone, Tract 12035060213