Lexington lies in the state of Kentucky which has conformed to the federal tax code since Opportunity Zone legislation was implemented in the IRC. Both the city and state have adopted these new provisions.
Out of the 61 census tracts that exist within, or partially within the city of Lexington 5 have been designated eligible for Qualified Opportunity Fund investment. This represents approximately 8.20% of the census tracts in the city. Of the zones that are eligible, 5 qualify as a low-income community. This means the poverty rate was above 20%, or that the median household income was below 80% of the state or metropolitan area’s median household income.
The remaining zones qualified as contiguous, meaning they were located adjacent to an eligible tract, and the median household income did not exceed 125% of that eligible tract. Lexington lies in the state of Kentucky which automatically conforms to the federal tax code as it is amended. Both the city and state have adopted the new Qualified Opportunity Zone provisions. Kentucky has 144 opportunity zones, which means Lexington contains 3.47% of the Qualified Opportunity Zones that exist within the state.
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