Opportunity Zones are a tool created by the Tax Cuts and Jobs Act of 2017 to spur investment on underserved areas. They offer investors a tax incentive by investing their unrealized capital gains into a designated “Opportunity Fund.”
Did you know that there are $2.3 trillion of unrealized capital gains in the United States? And did you know that the average Opportunity Zone consists of 56% minority residents? Minority business enterprises (MBEs) are the foundations of their communities, and Opportunity Zones can be a powerful way to bring investment dollars into these MBEs.
According to the 2017 legislation, Opportunity Zone investors can defer, reduce, and even eliminate their tax liability on capital gains. While the Department of Treasury and Internal Revenue Service (IRS) are still finalizing the rules on Opportunity Zones, there is already a significant amount of buzz and excitement surrounding this historic initiative.
To this end, the Minority Business Development Agency (MBDA) is hosting a series of Opportunity Zone Summits throughout the Nation this year. Last month, we kicked off our tour in Philadelphia with a packed event at the Philadelphia MBDA Business Center. We look forward to hosting many more exciting Opportunity Zone Summits!