Treasury Designates Opportunity Zones for 15 States, Three Territories
The Treasury Department today designated qualified opportunity zones (OZs) in 15 states and three territories, the first such designations made after the creation of the areas by H.R. 1. Investors in qualified opportunity funds that make investment in qualified OZs can defer tax on prior gains until no later than Dec. 31, 2026. States were required to submit their qualified OZ nominations by March 21 or to request a 30-day extension and today’s designations are for the states and territories that submitted by the March 21 deadline. The states include Arizona, California, Colorado, Georgia, Idaho, Kentucky, Michigan, Mississippi, Nebraska, New Jersey, Oklahoma, South Carolina, South Dakota, Vermont and Wisconsin. The territories are American Samoa, Puerto Rico and the U.S. Virgin Islands. Treasury also announced that the Internal Revenue Service plans to issue additional information on qualified opportunity funds, specifically to address the certification of opportunity funds, which are required to have at least 90 percent of fund assets invested in OZs.