Policy Focus: Opportunity Zones Program - An Early Overview of Program Details and What’s Ahead
Opportunity Funds are a new class of investment vehicles that aim to responsibly drive much-needed capital into rural and low-income urban communities. O Funds will activate passive holdings by connecting investors to investment opportunities located in newly designated Opportunity Zones.
This concept – originally introduced in the Investing in Opportunity Act (IIOA) – is the first new community development tax incentive program introduced since the Clinton Administration. The program will allow U.S. investors to receive a temporary tax deferral and other tax benefits when they reinvest unrealized capital gains into O Funds for a minimum of five years. Today, trillions of dollars in unrealized capital gains are held in stocks and mutual funds alone. This capital could soon be invested in O Funds to uplift local economies throughout the nation.