The Tax Cut and Jobs Act of 2017 established a new economic tax incentive called Opportunity Zones. The incentive is designed to encourage long-term, private investments in low-income census tracts by providing a federal tax incentive for taxpayers who reinvest unrealized capital gains into Opportunity Funds, which are then invested into opportunity zones.
Opportunity Funds are specialized tax vehicles dedicated to low-income areas and aimed at spurring investment and entrepreneurialism. Ultimately, that will result in business creation and economic prosperity in areas called Opportunity Zones. The zones must be comprised of Low-Income Community Census Tracts (LIC), designated by governors in every state and territory. Census tracts with a poverty rate of 20 percent or greater and/or family income less than 80 percent of the area’s median income are eligible for consideration.
In Iowa, 25 percent of the state’s LIC’s are eligible to be nominated to the U.S. Department of the Treasury for Opportunity Zone designation. Once designated, tracts remain in place for 10 years.
Interactive Map Of Opportunity Zones
The Economic Innovation Group created an interactive map of the 8,700 Qualified Opportunity Zones throughout the country. The map shown represents Ida County’s Qualified Opportunity Zone which encompasses the City of Ida Grove and into a portion of unincorporated Ida County.
Interested in learning more about investment opportunities located in Ida County? You can learn about these sites with great potential! Have questions? Reach out to Ida County Economic Development Corporation. Please contact Rita Frahm at 712-371-9438 to learn more.