McHenry Speaks in Belmont on Opportunity Zone Program

McHenryEarlier this week, Congressman Patrick McHenry (R-Lincoln), spoke to a group of elected officials and Montcross Chamber board members in Belmont about the newly enacted Opportunity Zone program, which was expanded in the 2017 Republican Tax Cuts and Jobs Act.

In May, North Carolina’s 252 Opportunity Zones were designated by the State approved by the US Treasury. The new program is intended to attract development to low-income areas by re-investing unrealized capital gains into designated communities. These communities were selected through a combined approach of comparing census tracks with areas with a poverty rate of 20% or higher, or a median household income that is less than 80% of the surrounding area.

To qualify for the program, an investor must self-certify as a Qualified Opportunity Fund – click here for more information. Investments made by Opportunity Funds will receive temporary tax deferral for reinvested capital gains, step-up in basis for capital gains reinvested in an Opportunity Fund, and permanent exclusion from taxable income of long-term capital gains.

The program is still awaiting final implementation processes from the Treasury Department and IRS, but ability to apply for certification as a Qualified Opportunity Fund and therefore utilize this program is expected in late 2018 or early 2019. For more information about North Carolina’s Opportunity Zones click here.

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