What is an Opportunity Zone?
Public Law 115-97, also known as the Tax Cuts and Jobs Act of 2017, allows the Governor of each state to nominate certain census tracts as “Opportunity Zones”. 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.
See the link for interactive mapping and for lists of qualifying census tracts, by state. (NEW UPDATE)
- MAPPING with CENSUS TRACTS
- Opp Zone - Missouri Eligible Census Tracts
- Opp Zone - Missouri Eligible Contiguous Census Tracts
- Opp Zone - Missouri Eligible Cross State Census Tracts
Note! The U.S. Department of the Treasury has not completed its rulemaking on this program at this time. All maps and lists provided by DED are for planning purposes only and may be subject to change based upon the Department of the Treasury’s final rule.
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.
DED is working with the Department of Revenue to determine any state benefits that may apply, as well.
What is the purpose of an Opportunity Zone?
To drive needed capital into distressed communities.
How many Opportunity Zones may a state nominate?
Each state is limited to the greater of 25 total eligible census tracts or 25% of the total number of eligible census tracts within the state. There is no requirement for a state to nominate all eligible census tracts.
What Federal agency will administer the Opportunity Zone Program?
The U.S. Department of the Treasury. The Department of the Treasury will proceed through the formal rule-making process before the program can be finalized.
What is the State’s role?
Under the Act, the Governor is authorized to nominate census tracts to the U.S. Department of the Treasury for designation as “Opportunity Zones”.
The nominations must be made by the Governor no later than 90 days after the Tax Cuts and Jobs Act of 2017 was signed. That date has been established as March 21, 2018. (NEW UPDATE)
How will the Governor determine which zones to nominate?
Governor Eric Greitens has directed DED to take all necessary steps to research and recommend which areas should be designated as Opportunity Zones in the State of Missouri.
Pursuant to the Governor’s directive, DED has established the following:
Education and Awareness:
In order to inform the public of the Opportunity Zone recommendation process and in order to allow feedback, comments and input, DED has established this website for continual update and will host a webinar from 11:00 a.m. to noon on February 2, 2018. (already conducted)
Analysis and Impact:
DED will work directly with the Missouri Department of Revenue to assess Opportunity Zones’ projected impact to State taxes.
Process for Submitting Proposals:
In order to determine possible nominations of eligible census tracts, DED will solicit proposals from local governments (cities and counties) that contain, at a minimum, the specific relevant information found on the attached “Opportunity Zone – Proposal”.
Each submission must be on the local government letterhead signed by the Chief Elected Official or his/her official representative.
The submission must be scanned and emailed or postmarked no later than Friday, March 2, 2018 to:
Missouri Department of Economic Development
Attn: Opportunity Zones
P.O. Box 118
301 West High Street, Suite 770
Jefferson City, Missouri 65102
Scanned documents may be emailed to: email@example.com
Please note that the State’s network has size limitations for documents mailed.
Cities and Counties may submit more than one proposal (census tract or group of census tracts) for consideration, however, each must be clearly prioritized to assist the Department in understanding local preferences. Contiguous tracts may be considered one proposal. Each separate proposal must provide separately, the information found in the “Opportunity Zone – Proposal” to be considered. Each separate proposal must be prioritized.
Public notice regarding webinar is released: Monday, January 29, 2018
Website and relevant information goes live: Monday, January 29, 2018
Webinar: Friday, February 2, 2018 @ 11:00 a.m. (already conducted)
Proposals for nomination are due to DED: Friday, March 2, 2018
Nominations are submitted from the State: Wednesday, March 21, 2018 (NEW UPDATE)
Where can I find more information about Opportunity Zones?
Sec. 13823 contains the amendment for “Subchapter Z – Opportunity Zones”.