A New tool to stimulate investment in Halifax County
Opportunity Zones are a new economic development tool enabled by the Tax Cuts and Jobs Act of 2017 and designed to encourage long-term investments in certain lower-income areas of Halifax County.
The Opportunity Zone Program provides federal tax incentives for investors to re-invest unrealized capital gains into Opportunity Funds that are dedicated to investing in economically distressed areas.
Specifically, the Opportunity Zone Program provides deferral and reduction of capital gains taxes when the gain is invested in a Qualified Opportunity Fund and maintained for at least 5 years. Additional tax incentives are available for investments held for periods of seven years and 10 years.
The program is designed to be flexible and allows for a range of different types of investments. Unlike other federal tax credit programs, there is no authorized cap on the amount of capital that can be made available through Opportunity Zone investments.
In Halifax County, census tracts in the Roanoke Rapids and Enfield areas have been designated as Opportunity Zones that offer tremendous potential for investment in housing, commercial and industrial development. Click here for an overview of investment opportunities in the Roanoke Rapids opportunity zone. Click here for an overview of investment opportunities in the Enfield opportunity zone. A map of these census tracts is provided below:
Final guidelines for the Opportunity Fund Program have not been released by the U.S. Treasury. Questions about the type of the investments or fund formation should be included in these guidelines. Additional information can be found at the following links:
Halifax County 2019 OZ Overview
Guiding Principles for Opportunity Zones
Policy Focus – Opportunity Zones Act
IRS Revenue Procedure 2018-16
National Law Review – Summary of additional IRS Rules Regarding Opportunity Zones