What is Opportunity zone?
An '''opportunity zone''' is a geographic area in the [[United States]] where investments are exempt from [[Captial Gains]] tax. The concept of opprtunity zone was introduced in the [[Tax Cuts and Jobs Act of 2017]] by the [[Trump administration]]. They are similar to [[Enterprise zone]]s, a concept introduced in the 1980s in the [[United Kingdom]]. In the United Kingdom enterprise zones were meant to make it easier for people living living there to start a [[business]] and to provide tax incentives to encourage locals to invest in them. In the United States [[empowerment zone]]s were introduced in 1993 to allow [[local government]]s to compete for [[grant]]s and [[tax incentive]]s. The 2017 law allows [[state governor]]s to designate up to 25% of [[low-income]] [[census tract]]s in their [[state]] as opportunity zones. There are 8,700 opportunity zones in the United States. They cover 35 million Americans. Investors in those zones can defer [[capital gains tax]] until 2026. This helps investors lower their tax burden.<ref>{{Cite web|url=https://www.npr.org/2019/07/08/736546264/white-house-touts-help-for-poor-areas-but-questions-endure-over-wholl-benefit|title=White House Touts Help For Poor Areas — But Questions Endure Over Who'll Benefit|website=NPR.org}}</ref><ref>{{Cite web|url=https://www.nprillinois.org/post/trumps-tax-plan-created-opportunity-zones-help-low-income-areas-2-years-later-are-they-working|title=Trump&#039;s Tax Plan Created Opportunity Zones To Help Low-Income Areas. 2 Years Later, Are They Working|website=www.nprillinois.org}}</ref> == References == {{reflist}} {{geo-stub}} [[Category:Taxation in the United States]]