Opportunity Zones
Opportunity Zones are a new community development tool established by Congress in the Tax Cuts and Jobs Act of 2017. This new tool is designed to drive long-term capital to low-income communities. The new law provides a federal tax incentive for investors to re-invest their capital gains into Opportunity Funds, which are specialized vehicles dedicated to investing in designated low-income areas.
There are 176 census tracts in Tennessee that are qualified opportunity zones. These low-income tracts were nominated by Tennessee and certified by the Secretary of the Treasury. Tennessee’s 176 tract recommendations were determined based on a strategic and data-driven review of county mayor feedback in addition to consideration of state priorities and initiatives including:
- Business development and brownfield redevelopment opportunities
- Retail, commercial and tourism development opportunities
- Community and rural development initiatives
- Low-income housing development opportunities
- Proximity to entrepreneur centers, technology transfer offices, and colleges and universities
Resources
- TNECD Opportunity Zones Directory
- IRS Opportunity Zones Frequently Asked Questions
- Community Development Financial Institutions (CDFI) Fund
- Economic Innovation Group (EIG)
- Council of Development Finance Agencies (CDFA)
- IRS Regulations and Guidance (Released April 2019)
- Federal Register: Notice of Proposed Rulemaking for Investing in Qualified Opportunity Zones (May 2019)
- U.S. Department of Treasury Request for Comments on Data Collection and Tracking for Qualified Opportunity Zones (Comments are due by May 31, 2019)
TNECD conducted nine technical assistance trainings across the State from the Tri-Cities to Memphis in December 2019. Over 1,400 attendees learned about the “opportunity zone” benefit. Opportunity Alabama conducted three of the sessions, LBMC and Frost Brown Todd, LLC conducted the other six.Links to the slide presentations are found here:
- Lattimore Black Morgan and Cain (LBMC) / Frost Brown Todd, LLC – Memphis Presentation held 12/11/2018
- Opportunity Alabama – Chattanooga Presentation held 12/4/2018
Informational Events
- CDFA Federal Financing Webinar Series: Opportunity Zones
- Webinar hosted by ECD and the Tennessee Banker’s Association - Download Webinar Recording