Here are some Frequently Asked Questions on the  Internal Revenue Service’s Opportunity Zones initiatives. 

A. An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service.

A. Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.

A. No, they are new. The first set of Opportunity Zones, covering parts of 18 states, were designated on April 9, 2018. Opportunity Zones have now been designated covering parts of all 50 states, the District of Columbia and five U.S. territories.  

A. Opportunity Zones are an economic development tool—that is, they are designed to spur economic development and job creation in distressed communities.