Opportunity Zones

Investment opportunities exist throughout Aurora for those looking to make an impact in our community. The Federal Opportunity Zone program is a community and economic development tool that aims to drive long-term private investment into economically challenged areas of communities nationwide. The Opportunity Zones program provides a tax incentive for investors to reinvest their unrealized capital gains into Opportunity Funds dedicated to investing in Opportunity Zones.

Eligibility Requirements

The investment must be made via a Qualified Opportunity Fund. An Opportunity Fund is a privately managed investment vehicle organized as a corporation or a partnership to invest in qualified Opportunity Zone Businesses. The fund must hold at least 90 percent of its assets in such property. The investment must be derived from a gain in another investment and transferred into an Opportunity Fund within 180 days of realizing the gain.

Tax Benefits For Eligible Investment

If the investment is held for a minimum of five years, the taxable amount of the capital gains reinvested is reduced by 10%.

If the investment is held for seven years, the taxable amount of capital gains reinvested is reduced by an additional 5%, bringing the total reduction to 15%.

After holding for ten years, there is a permanent exclusion from taxable income on the capital gains from the investment in the Opportunity Fund.

Are you interested in learning more about Qualified Opportunity Funds? Find additional information from the Tax Foundation on Qualified Opportunity Funds.

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