Qualified Opportunity Zones (QOZ) are an economic development tool designed to spur economic development and job creation in distressed communities. Where new investments, under certain conditions, may be eligible for preferential tax treatment.
Under the program, an investor can defer capital gains tax on realized gains if the gains are invested in a Qualified Opportunity Fund within180 days of the sale.
Twelve percent of US census tracts are Opportunity Zones (8,762 tracts). Governors of the 50 states and 4 territories and the mayor of Washington, DC, nominated the zones, which were officially designated by the US Department of the Treasury. The designated zones have lower incomes, higher poverty rates, and higher unemployment rates than eligible non-designated tracts.