Low Tax Opportunity Zones, established by the federal Tax Cut and Jobs Act of 2017, encourage long-term investment and job creation in targeted communities by reducing taxes for many job creators. The zones enhance local communities’ ability to attract businesses, developers and financial institutions to invest in targeted areas by allowing investors to defer capital gains taxes through investments in federally established Opportunity Funds.
It's an economic and community development tax incentive program that provides a new impetus for private investors to support distressed communities through private equity investments in businesses and real estate ventures. The incentive is deferral, reduction and potential elimination of certain federal capital gains taxes. U.S. investors hold trillions of dollars in unrealized capital gains in stocks and mutual funds alone, a significant untapped resource for economic development!
Q: What exactly is an Opportunity Zone?
A: An Opportunity Zone is a low-income census tract with an individual poverty rate of at least 20 percent and median family income no greater than 80 percent of the area's median income.
Q: What is the benefit of an Opportunity Zone?
A: An Opportunity Zone can receive funds from Opportunity Funds, which provide investors with a chance to put their money to work rebuilding low- to moderate-income communities. The fund model will enable a broad array of investors to pool their resources in Opportunity Zones, increasing the scale of investments going to underserved areas.
Investing in an Opportunity Zone can offer a permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years. This exclusion only applies to gains accrued after an investment in an Opportunity Fund.
To become a Qualified Opportunity Fund, an eligible corporation or partnership self-certifies by filing Form 8996, Qualified Opportunity Fund, with its federal income tax return.
View Opportunity Zones by Media Markets (click on the Fort Myers media market to the right).
View individual tracts here.
Five Census tracts in Collier County were among 427 areas statewide that were nominated Low Tax Opportunity Zones by Gov. Rick Scott and certified by the U.S. Department of the Treasury in June. The evaluation process included a statistical analysis of poverty rates, population, unemployment rates and other economic indicators, in addition to assessing recommendations from more than 1,200 requests statewide from municipal and county governments, regional planning councils, nonprofits, developers, investors and more.
The five designated areas in Collier County are:
- Three areas in and around Immokalee, from Lake Trafford to the west to the county line to the east
- Naples Manor communities west of Collier Boulevard, north of U.S. 41 East and south of Rattlesnake Hammock Road
- Land in Golden Gate, west of Collier Boulevard, south of Golden Gate Parkway and east of Santa Barbara Boulevard
Click on the links below for population, income, race and other information by Census tract:
View a map of all Collier County's Census tracts here.
Contact or visit our office:
2660 N. Horseshoe Dr., Suite 105, Naples Florida 34104
Jace Kentner, Director
Last updated on Jan. 23, 2019