Opportunity Zone Economic Development Program
Community Development Financial Institutions Fund, U.S. Department of Treasury, U.S. Internal Revenue Service
Applications accepted on an ongoing basis
The Opportunity Zone Program is designed to encourage
economic development and job creation in distressed
communities through tax benefits. Investors may defer
taxes on most capital gains up to Dec. 31, 2026 by making
an eligible investment in an Opportunity Zone.
Under a nomination process completed in June of 2018,
more than 8,760 communities in all 50 states, the
District of Columbia, and 5 U.S. territories were
designated as qualified Opportunity Zones. Opportunity
Zones retain their designation for 10 years.
Almost all capital gains are eligible. Contact
800.829.1040 to verify eligibility.
To qualify for deferral, the amount of a capital gain to
be deferred must be invested in a Qualified Opportunity
Fund (QOF), which must be an entity treated as a
partnership or corporation for Federal tax purposes and
organized in any of the 50 states, D.C. or U.S.
territories for the purpose of investing in qualified
Opportunity Zone property. The QOF must hold at least 90%
of its assets in qualified Opportunity Zone property.
Nationwide and U.S. territories
Amount of funding
Investors can defer tax on any prior capital gains
invested in a Qualified Opportunity Fund (QOF) until the
earlier of the date on which the investment in a QOF is
sold or exchanged, or December 31, 2026. If the QOF
investment is held for longer than 5 years, there is a
10% exclusion of the deferred gain. If held for more than
7 years, the 10% becomes 15%. If the investor holds the
investment in the Opportunity Fund for at least 10 years,
the investor is eligible for an increase in basis of the
QOF investment equal to its fair market value on the date
that the QOF investment is sold or exchanged.
To become a Qualified Opportunity Fund, an eligible
corporation or partnership self-certifies by filing
IRS Form 8996 with its federal income tax return.
Additional information and assistance:
Capital funding · Community and economic development · Healthcare facilities
For complete information about funding programs, including your
application status, please contact funders directly. Summaries are provided
for your convenience only. RHIhub does not take part in application processes
or monitor application status.