Where Are Opportunity Zones?

Posted Sep 12, 2022


Qualified Opportunity Zones (QOZs) are tracts of land in distressed communities where investors can buy properties that qualify for tax benefits. QOZs were introduced in 2017 as part of the Tax Cuts and Jobs Act. QOZ designations began as early as 2018 and have become an excellent tool for investors looking to improve underdeveloped areas.

QOZs are intended as a tool to help both investors and disadvantaged communities. By investing in QOZs, investors can defer capital gains taxes on prior investments if they reinvest in a QOZ. These tax benefits encourage investors to funnel money into redeveloping poorer communities they otherwise might not have chosen. Redevelopment in QOZs helps spur economic growth and create jobs in these locations.

Designated Qualified Opportunity Zones (QOZs) are located in all 50 states plus six territories. The specific low-income census tracts that became designated as QOZs were selected by state governors in 2018 and certified by the U.S. Department of the Treasury. There are now 8,766 individual census tracts designated as QOZs across the country.

The states and territories with the most QOZ tracts are California (879) and Puerto Rico (865). These are then followed by Texas (628), New York (514), and Florida (427). From there, the numbers begin dropping quite a bit. We don’t reach double digits though until Oregon at 86. The smallest number of QOZs is the territory of the U.S. Virgin Islands at 14, understandably so with only 133.7 square miles.


Number of Opportunity Zone census tracts by state.

Source: https://eig.org/opportunityzones/facts-and-figures 

The eig.org has an interactive map that allows you to browse the U.S. for Opportunity Zones (OZs). You can also type in a specific address to find surrounding OZs.

Are New OZs Being Created?

No — of the census tracts that were originally available for OZ qualification, the Treasury has completed its designation of qualified OZs. When states originally nominated eligible tracts, they chose the maximum number available for their state. Now that states have elected all OZs, there will be no more opportunities for new OZs.

This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation. Investors in QOFs will need to hold their investments for certain time periods in order to receive the full QOZ Program tax benefits. A failure to do so may result in the potential tax benefits to the investor being reduced or eliminated. If a fund fails to meet any of the qualification requirements to be considered a QOF, the anticipated QOZ Program tax benefits may be reduced or eliminated. Furthermore, a fund may fail to qualify as a QOF for non-tax reasons beyond its control, such as financing issues, zoning issues, disputes with co-investors, etc. Distributions to investors in a QOF may result in a taxable gain to such investors. The tax treatment of distributions to holders of interests in a QOF are uncertain, including whether distributions impact the aforementioned QOZ Program tax benefits. A QOF must make investments in Qualified Opportunity Zones, which carries the inherent risk associated with investing in economically depressed areas

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