Federal Opportunity Zones
Federal Opportunity Zones (OZs) were created by Congress in the Investing in Opportunity Act included in the Tax Cuts and Jobs Act of 2017. OZs are designed to stimulate long-term private investment in low-income urban and rural communities by allowing investors to realize significant federal tax benefits through investing capital gains in Qualified Opportunity Funds.
Benefits, which include tax deferrals and reduction, increase the longer investments are held in Opportunity Funds. Investors cannot invest directly in qualified projects or properties but must go through an Opportunity Fund.
Oklahoma has taken full advantage of the Tax Cuts and Jobs Act (H.R. 1) of 2017, designating 117 Census tracts as Federal Opportunity Zones (OZs).
Why Invest in Oklahoma
Often thought of as an energy state, Oklahoma has diversified its economy by rapidly growing the aerospace, manufacturing and business services sectors.
Oklahoma has rolling conformity to federal income tax law. That means our tax forms begin with your Federal Adjusted Gross Income.
Oklahoma’s Priority Enterprise Zones
To coordinate with the federal government’s goal of alleviating poverty, Oklahoma will utilize Priority Enterprise Zones (PEZs) created in the Oklahoma Enterprise Zone Act to attract capital to Oklahoma’s Opportunity Zones. Investors who take advantage of Oklahoma’s Federal Opportunity Zones within PEZs can potentially layer other state and/or local incentives, including:
- Investment Tax Credit – Allows a corporate income tax credit for new investment or job creation. PEZs double the income tax credit and enjoy enterprise zone designation for the life of the selected OZ tracts, instead of being subject to typical annual updates. This provides certainty to businesses for multi-year planning purposes.
- Enterprise Zone Incentive Leverage Act – Allows local areas to capture state sales tax if the local areas have a match. PEZ would allow participation in leverage incentive, if it is extended
- Oklahoma Small Business Linked Deposit Act – Would allow small businesses located in a PEZ to receive low interest loans from banks participating in the Oklahoma Treasurer’s Linked Deposit Program
- Tax Increment Financing (TIF) – Local incentive authorized in state statute utilized for redevelopment and reinvestment of blighted areas. PEZ designations are evidence of distressed areas and would be allowed to be incorporated in a Local Development Plan as a TIF District.
Explore an interactive map of available buildings and sites in Opportunity Zones.
Connect with Investors
Submit a property or project investment opportunity to us. We’ll make a complete list available to potential investors.
Get in Touch
For more information, contact Jon Chiappe, Director of Research at email@example.com or 405-815-5210.
The materials contained on this website have been prepared by the Oklahoma Department of Commerce for informational purposes only and do not constitute legal or tax advice. This information is subject to change based on judicial interpretation and legislative action. The application of the information is subject to your unique facts and circumstances. YOU SHOULD NOT ACT UPON ANY INFORMATION CONTAINED IN THESE MATERIALS WITHOUT SEEKING YOUR OWN PROFESSIONAL LEGAL AND TAX ADVICE.