The Opportunity Zones tax incentive was established by Congress in the 2017 Tax Cut and Jobs Act as an innovative approach to spur long-term private sector investments in low-income urban and rural communities nationwide. This economic development initiative is based on the bipartisan Investing in Opportunities Act

Opportunity Zones may help address a number of challenges in Independence, including:

  • Promoting economic vitality in distressed areas of Independence.
  • Funding the development of workforce and affordable housing in areas with escalating prices and inventory shortages.
  • Funding new infrastructure to support population and economic growth. 
  • Upgrading the capability of existing underutilized assets through capital improvement investments. 

The Treasury Department designated 4 census tracts in Independence as “opportunity zones”.  Those tracts are 29095011000, 29095011600, 29095011700, and 29095011800. 

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 the 161 Opportunity Zones listed below to the federal government for inclusion in the program. The provision has two main tax incentives to encourage investment:

  • Temporary deferral of inclusion in gross income for capital gains that are reinvested into Opportunity Funds.
    • Investors can roll existing capital gains into Opportunity Funds with no up-front tax bill.
    • If investors hold their Opportunity Fund investments for five years, the basis of their original investment is increased by 10 percent (meaning they will only owe taxes on 90 percent of the rolled-over capital gains.) If investors hold for seven years, the basis increases by a further five percent.
    • Investors can defer original tax bill until December 31, 2026, at the latest, or until they sell their Opportunity Zone investments, if earlier.
  • Excludes from taxable income capital gains on Opportunity Fund investments held for at least 10 years

Opportunity Zone Investment Timeline/Process


OUR MISSION STATEMENT

To support the economic growth of Independence through the creation of new employment opportunities and the attraction of private capital investment.

CONTACT US

info@inedc.biz
816.252.5777
210 W. Truman Road, Independence, MO 64050

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