Opportunity Zones are a Community Investment tool established by Congress in the Tax Cuts and Jobs Act of 2017. Ten census tracts in Springfield have been designated as Opportunity Zones by the Missouri Department of Economic Development. (DED)
These zones provide an economic development tool that encourages long-term investments and job creation in low-income and/or economically distressed community areas.
The program works by providing tax incentive for investors who invest capital gains in new businesses or improving property located in designated Opportunity Zones.
An investor can defer tax on any prior eligible gain to the extent the corresponding amount is invested in a Qualified Opportunity Fund (QOF).
Qualified investments held for at least 5 years are eligible for a 10% exclusion of the deferred gain. If qualified investments are held for 10 years, the investor may qualify to pay no taxes on any capital gains produced through the investment in the Opportunity Zone.
City application or approval is not required to take advantage of the OZ tax benefits. Consulting with a tax professional is recommended.