States are watching for the Federal Announcement on Opportunity Zones. Federal Opportunity Zones connect privately invested money to low income tracts. This funnels capital into areas where business has a difficult time borrowing money.
The States Governor using supporting data , assigns low income census tracts as Opportunity Zones. This is funded by providing a tax break that enables capital gains from other investments to be invested in to the Opportunity Zone.
Investors receive special treatment on profits from these new investments. For example- holding the Opportunity Zone investment for 10 years - makes the capital gains tax free. States are anticipating the IRS and Treasury Departments publishing and distribution of guidelines on funding these Opportunity Zones in the 3rd quarter of 2018.
This will immediately incentivize people to start and scale their business modals locally.
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