About Opportunity Zones

Click here for a list with map and demographics of Opportunity Zones in Volusia County!

What are "Opportunity Zones?"
Opportunity Zones are a new tool for community economic development established in the federal Tax Cut and Jobs Act of 2017 to encourage long-term investment and job creation in targeted communities by reducing taxes for job creators. This new tool provides tax incentives, including a temporary deferral on capital gains taxes, when investors reinvest those gains in qualified Opportunity Funds. The funds must in turn invest in low-income communities from designated census tracts, called Opportunity Zones. This encourages private investment in these zones by providing a tax incentive for investors who invest in qualified businesses and property in these areas.

The act allowed the Governor of each state to nominate up to 25 percent of eligible low-income census tracts as Opportunity Zones. States submit nominations to the U.S. Department of the Treasury, which has 30 days to certify the Opportunity Zones or provide further guidance to the state. Once designated, Opportunity Zones maintain their designation for 10 years.

What are "Census Tracts?"
Census tracts are small, relatively permanent statistical subdivisions of a county that are updated before each U.S. Census every 10 years. A census tract usually covers a geographically contiguous area, and averages about 4,000 people. Based on the federal requirements for the Opportunity Zones  program, Florida can nominate 427 census tracts. The poverty rate for each census tract is based on how household income compares to the national thresholds calculated by the Census Bureau. A census tract is designated as a Low-Income Community when 20 percent or more of households in the tract fall below the poverty line (for their household size) or the median family income in the tract is below 80 percent of the statewide median income.

While the tax bill allowed 5% of tract nominations to be tracts that did not meet the low-income designation but were contiguous, or next to, other tracts that did meet the criteria, Florida chose not to nominate contiguous tracts so that the areas with the most need could be designated. The Florida Department of Economic Opportunity (DEO) economists used a combination of data and project requests from city and county governments, regional planning councils, nonprofits, investors, developers and others to determine the Zones.

What Are "Opportunity Funds?"
Opportunity Funds and their investments will be private-sector driven and designated through the U.S. Department of the Treasury and the Internal Revenue Service. Once a zone is certified, local communities will promote their Opportunity Zones to qualified Opportunity Funds in order to secure investments and bring additional economic development to local businesses andfamilies.

 Click here for a list with map and demographics of Opportunity Zones in Volusia County!

 

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