The Qualified Opportunity Zone (QOZ) Program
The QOZ program was created by Congress in the Tax Cuts and Jobs Act of 2017 to revitalize economically disadvantaged communities in the United States. QOZ tax incentives encourage long-term investment in over 8,700 designated underserved areas nationwide, leading to local economic development and job creation.
Under the QOZ program, investors roll over capital gains into Qualified Opportunity Funds that invest in businesses located in QOZs. Taxes on the capital gains investors would have paid if the funds had not been invested are deferred. If QOZ investments are held for ten years or more, the investor pays no tax on capital gains when their investment is liquidated.
For more information, visit Opportunity Zones Frequently Asked Questions on the IRS website.