In 2017, Congress passed the Tax Cuts and Jobs Act, which included the Opportunity Zone tax incentives designed to spur investments in low-income census tracts. On October 22, 2019, Virginia Governor Ralph Northam announced the official launch of Opportunity Virginia. Opportunity Virginia’s mission is specifically: to encourage and enable investments with positive impacts in communities by ensuring fair and equitable access to resources and facilitating productive connections between investors, project sponsors, and communities throughout the Commonwealth.
The Governor’s initiative was first introduced in April of 2019, and it is designed to leverage the federal Opportunity Zone program. Opportunity Virginia allows investors to defer, reduce, and eliminate capital gains tax.
Significantly, stakeholders should note that “tax on capital gains that are reinvested into Opportunity Zones are deferred until 2026 and can be reduced by up to 15%. At the 10-year mark, tax on capital gains from your OZ investment are eliminated completely.”
In the announcement, the Governor emphasized the numerous resources available for individuals to learn more, saying:
Opportunity Virginia has also developed a virtual marketplace to help educate stakeholders about the program, share project ideas and pipeline, and connect investors to businesses and property in Virginia’s Opportunity Zones. In addition, tools and investment resources are being made available to help projects achieve the best outcomes for all partners.
For more information about Opportunity Virginia, you can visit opportunityva.org.
Opportunity Virginia offers incredible opportunities to investors. Investors are well-advised to seek advice from a tax professional in Virginia if they are considering taking advantage of these opportunities.
If you need assistance with the tax implications for opportunity zones in Virginia or any other of your investments, contact Frost & Associates, LLC today by clicking here or calling 410-862-4675.