What are Opportunity Zones?
Capital for underserved communities. Tax incentives for investors.
The Opportunity Zones Program is designed to drive long-term capital to real estate projects and operating businesses located in designated communities throughout the nation. The program offers an opportunity for private investors to support businesses and real estate in underserved communities through a variety of tax incentives.
Private investors with a capital gains tax liability can invest in a Qualified Opportunity Fund to receive a variety of tax benefits. In turn, the Funds make long-term equity investments in eligible businesses and real estate projects that create jobs in local communities.
Opportunity Zones are geographic areas across the United States, defined by census tract, as nominated by the State and designated by the federal government. The Chicagoland Opportunity Zones Consortium represents 135 Opportunity Zones in Chicago and 48 Opportunity Zones in suburban Cook County.
Check out this interactive map of Opportunity Zones.
How the incentive works
Benefits
Defer capital gains
Partial forgiveness of capital gains
Tax-free appreciation
Timeline
Within 6 months of selling an asset
Roll your capital gains into an Opportunity Zones Fund. Defer paying federal taxes on the realized gains the year of your asset sale until December 31, 2026.
Within 6-12 months of raising capital
The Opportunity Zones fund makes equity investments in Opportunity Zones Businesses, real estate or operating companies. Further benefits depend on how long you leave your investment in.
After 5 years
Invest for over five years and reduce your federal tax bill on the deferred capital gain by 10%.
After 7 years
Invest for over seven years and reduce your federal tax bill on the deferred capital gain by 15%.
After 10 years
Pay no federal taxes on any profits from an Opportunity Zones investment beyond ten years.
The project gets…
The business or real estate project receives a long-term equity investment.
Additional Opportunity Zones Resources
Opportunity to Action: Opportunity Zones, a Pathway to Recovery - Series Recordings
Pathways to Opportunity Virtual OZ LinkUp Series
Held March 9, 2021, the Chicagoland Opportunity Zones Consortium and LOCUS featured an introduction to Chicago’s INVEST South / West Opportunity Zones sites.
Held on April 1, 2021, the Chicagoland Opportunity Zones Consortium and LOCUS featured an introduction to Cook County’s Lincoln Highway Industrial Corridor Opportunity Zones sites.
Held on April 29, 2021, the Chicagoland Opportunity Zones Consortium and LOCUS featured OZ spaces for growing businesses in the final event of this LinkUp series.