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U St. George, Utah Photo: Get t y Images
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rban or rural? City or county? Investors in Utah Opportunity Zones can choose from 46 low income census tracts in Salt Lake City, Ogden, Richfield, St. George, Midvale and dozens of other locations around the Beehive State. Introduced in 2018, Opportunity Zones are economically distressed communities 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. How do they work? Opportunity Zones spur economic development by providing tax benefits to investors. They can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on
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which the investment in a QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for longer than five years, there is a 10% exclusion of the deferred gain. If held for more than seven years, the 10% becomes 15%. Second, if the investor holds the investment in the Opportunity Fund for at least 10 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. “Our goal is economic prosperity for all Utahns,” noted Gov. Gary Herbert in June 2018, when the 46 zones were designated. Opportunity Zones will go a long way in helping to support growth in economically distressed areas throughout the state. By working with these communities, the zones will attract more businesses and new investment.”
