Opportunity Zones

What Is An Opportunity Zone?

An Opportunity Zone is a portion of an economically distressed community where new investments - under certain conditions - may be eligible for tax preferential treatment. Opportunity Zones were added to the tax cuts by the Tax Cuts and Jobs Act on December 22nd, 2017.

How Do Opportunity Zones Spur Economic Development?

Opportunity Zones are designed to spur economic development and job creation in distressed communities by providing tax benefits to investors. First, investors can defer tax on any prior gains invested in a Qualified Opportunity Hub (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026. (A QOF is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property). If the QOF investment is held for longer than five years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the 10% becomes 15%. Second, if the investor holds the investment in the Opportunity Fund for at least 10 years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date that the QOF investment is either sold or exchanged. 

Pulaski's Opportunity Zone 

The Town of Pulaski's Opportunity Zone extends past Town limits into other parts of Pulaski County and the Jefferson National Forest. Within the Town, the Opportunity Zone extends to the intersection of Commerce Street and Lee Highway, up to the intersection of 5th Street Northwest and Lee Highway, and follows the curve of Lee Highway until the intersection with Alum Spring Road. Please see the map below for the exact specifications of the Opportunity Zone. The red line indicates our Town limits, with the shaded blue area indicating the Opportunity Zone. 

Town staff will provide a list of properties available within the Opportunity Zone at your request. 

TOP Opportunity Zone Map





Contact Us  

Darlene Burcham 


Interim Town Manager                   
                                   
540-994-8696

More Information                                     

                                                                         

Resources

Virginia Department of Housing and Community Development

U.S. Department of the Treasury: Community Development Financial Institutions Fund (CDFI)

U.S. Internal Revenue Service: Frequently Asked Questions

U.S. IRS Revenue Procedure

Tax Cuts and Job Act of 2017

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