Description
The Opportunity Zones program encourages long-term investment and job creation in low-income areas of the state, by allowing investors to re-invest unrealized capital gains in designated census tracts. The state of Missouri submitted 161 Opportunity Zones to the federal government for inclusion in the program.
Opportunity Zones are low-income census tracts in which:
- (1) The tract has a poverty rate of at least 20%; or
- (2)(A) For a census tract in a metropolitan area, the tract’s median family income does not exceed 80% of the greater of (A) the metropolitan area median family income or (B) statewide median family income; or
- (2)(B) For a census tract in a non-metropolitan area, the tract does not exceed 80% of the statewide median family income. However, in the case of a census tract located within a high migration rural county, low-income is defined by reference to 85% of statewide median family income.
- A “high migration rural county” is any rural county that, during the 20-year period ending with the year in which the most recent census was conducted, has a net outmigration of inhabitants from the county of at least 10% of the county population at the beginning of such period.
What is an Opportunity Fund?
An Opportunity Fund is any investment vehicle organized as a corporation or partnership for the purpose of investing in Opportunity Zones that holds at least 90% of its assets in qualified Opportunity Zone assets.
What is the benefit of an Opportunity Zone?
Certain eligible investments made by U.S. investors, including the reinvestment of unrealized capital gains into Opportunity Funds made inside designated Opportunity Zones, may gain favorable tax treatment and tax incentives, such as temporary deferrals for the investor.
What is the purpose of an Opportunity Zone?
To drive needed capital into distressed communities.
Do I Qualify?
In order to find out if your property is located in an Opportunity Zone, please visit the Interactive Opportunity Zones Map – this map may be utilized in order to find out if your property is located in a Designated Opportunity Zone.
How Do I Apply?
Please note that the U.S. Department of Treasury Administers the Federal Opportunity Zone Program. Information for the final rules and regulations of the program may be found at https://home.treasury.gov/news/press-releases/sm864.
Need Help?
Please email redevelopment@ded.mo.gov if you should have any questions or need technical assistance. If you have tax related questions, please work with a CPA in your area that is familiar with the Opportunity Zone program.