The Federal Tax Cuts and Jobs Act of 2017 included provisions for a new revitalization tool, the Opportunity Zone and Opportunity Fund. Broadly speaking, the Zones and Funds will allow investors to receive tax benefits on currently unrealized capital gains by investing those gains in qualified census tracts (Opportunity Zones). While the federal government is responsible for defining the investment process, the Governor of each state may nominate 25 percent of qualified census tracts as “Opportunity Zones.”
Governor Northam announced the nomination of 212 Opportunity Zones to the U.S. Department of Treasury on April 19, 2018. This represents the maximum number of zones the Governor may nominate under the new federal tax tool that targets low-income census tracts and provides an incentive for investment in those census tracts.
The nominations are based on the best available criteria and input to ensure fairness across the state and among rural, urban and suburban localities. The process gave priority to input received from localities in order to recognize the needs and opportunities at the level of government closest to investors and residents. In addition, statewide strategic criteria ensured factors evaluating those census tracts in most need and with the most likelihood of future investment were balanced. The final nominations also reflect proportionality at the GO Virginia region, Economic Development Organization sub-region and at the locality level.
By U.S Code., Treasury has 30 days from submission to approve of the nominations from Virginia. Once the Governor has received confirmation on the nominations, then Opportunity Zones will be considered “designated.”
- Click Here to View the nominated census tracts as a PDF
- Proportionality at GOVA & EDO Regions Maps
- List of 212 Nominated Opportunity Zones
- Press Release of Virginia Opportunity Zones
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