Opportunity Zones
An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service
Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.
No, they are new. The first set of Opportunity Zones, covering parts of 18 states, were designated on April 9, 2018. Opportunity Zones have now been designated covering parts of all 50 states, the District of Columbia and five U.S. territories.
Opportunity Zones are an economic development tool—that is, they are designed to spur economic development and job creation in distressed communities.
Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the 10% becomes 15%. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date that the QOF investment is sold or exchanged.
Want to Learn More? Visit: https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions
“We have enjoyed an excellent relationship for over 20 years with the City of Gardena’s Economic Development Department. Their team of professionals have provided us with attentiveness, resources and are always available to help facilitate developments on our end.”
LARRY FLYNT
Hustler Casino
“The City of Gardena views themselves as “partners” in creating what’s best for the City. They work hand in hand with the developer to insure the City gets the best possible project for their citizens.”
MITCH GARDNER
G3 Urban
“The City Government has always been receptive to our business’s needs. The City offers incentives, an excellent quality-of-life for all its citizens and an attractive talent pool of people from diverse backgrounds.”
CARLOS LIFOSJOE
Gardena Nissan
"Gardena is a clear leader in the South Bay. Since moving our business here, the City has maintained safe and clean neighborhoods for us to business in.”
STEVE ROGERS
Southwest Offset Printing
“Gardena is a vibrant place to do business and is a great place to live and call home. It is a great city with a solid pro-business government and a great well tenured City council.”
ZORAIDA HERNANDEZ
MOP Consulting
“The City of Gardena is an outstanding place for a business to grow. The business-friendly environment, experience amongst the Economic Development team and key location are excellent reasons why businesses continue to thrive here.”
JULES KANHAN
Keller Williams
MAJOR EMPLOYERS
