DC Launches Local Opportunity Zone Tax Benefit Regulatory Process
✉️ Want to forward this article? Click here.
More than two years since DC designated 25 Opportunity Zones (OZs), the city is implementing its own layer of tax incentive regulations.
Opportunity Zones are a designation for low-income census tracts meant to incentivize real estate development through Qualified Opportunity Funds (QOFs) that temporarily shield those investments from taxation. When an asset (whether tangible property, stock, or partnership interest) is sold, the resulting capital gains can be deposited into a QOF and will not be taxed until 2026, or until the investment is sold.
story continues below
loading...story continues above
Thus far, DC has followed the federal guidelines and replicated those tax benefits on the local level so that investors in QOFs could also avoid DC's capital gains taxation. Now, as part of the fiscal year 2021 budget, DC is adding a layer of oversight to better target its OZ incentives.
In order to benefit from Opportunity Zone tax shielding in DC, investors will have to participate in Qualified Opportunity Funds that are registered with the District. The QOF does not need to be based in DC, but needs to invest in projects in one of the city's 25 OZs that have either been granted another economic development incentive by DC; are an Office of the Deputy Mayor for Planning and Economic Development (DMPED)-awarded project; have received a letter of support from the Advisory Neighborhood Commission; or have scored at least a 75% on the Urban Institute Opportunity Zone Community Impact Assessment Tool.
"This new process is an effort to better align OZ investments with community priorities, maximize benefits to existing residents, businesses and organizations located in the District’s QOZs, and increase transparency of investments," a press release states.
Additional UrbanTurf reporting on Opportunity Zones:
- Two Reports Offer Perspective on How Opportunity Zones are Falling Short
- The DC Opportunity Zones That Saw Home Prices Pop Over the Last Year
- The Opportunity Zone Effect? Home Prices up 20 Percent in OZs Nationwide
- Maryland Site Offers the Opportunity to Own in Opportunity Zones
- Tax Rules Released Regarding Opportunity Zones
- DC Nominates 25 Opportunity Zones
See other articles related to: capital gains tax, economic development, incentives, opportunity zones, tax incentives
This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/dc-launches-local-opportunity-zone-tax-benefit-regulatory-process/17478.
Most Popular... This Week • Last 30 Days • Ever
![Donohoe Files PUD For 127-Unit Development in Friendship Heights](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/4201-garrison_image_560x420.jpg)
A plan to add another new residential building to the Friendship Heights pipeline is ... read »
![A Plan For More Development In Van Ness?](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/days-inn_image_560x420.jpg)
Forest Hills Connection is reporting that the owner of the Days Inn along Connecticut... read »
![Best New Listings: Windows Galore on Biltmore; One Up, One Down on Swann](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/1416-swann_image_560x420.jpg)
This week’s Best New Listings includes a bi-level condo north of Adams Morgan's mai... read »
![The Price For Dan Snyder's Former Potomac Home Drops By $5 Million](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/MDMC2125248_1_2_image_560x420.jpg)
On Monday, the listing price for the 30,000 square foot home that was originally buil... read »
![DC Home At Site Of Former Cafritz Mansion Set To List For $23.5 Million](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/3030-chain_image_560x420.jpg)
The eight-bedroom estate built by Banks Development along Chain Bridge Road will be l... read »
- Donohoe Files PUD For 127-Unit Development in Friendship Heights
- A Plan For More Development In Van Ness?
- Best New Listings: Windows Galore on Biltmore; One Up, One Down on Swann
- The Price For Dan Snyder's Former Potomac Home Drops By $5 Million
- DC Home At Site Of Former Cafritz Mansion Set To List For $23.5 Million
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro