Information about the Enterprise Zone here.
Virginia Enterprise Zone #53 is located within the Alleghany Highlands. The Alleghany Highlands Administrator for the Virginia Enterprise Zone can be contacted here.
In December 2017, Congress passed the Tax Cuts and Jobs Act which included the Opportunity Zone tax incentive meant to spur economic development and revitalization in communities lacking access to capital. This new tool encourages long-term equity investments in these under-served communities. Under the Act, investors receive tax incentives to capitalize Qualified Opportunity Zone Funds that invest in developments and businesses operating in designated Opportunity Zone census tracts.
First, investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for longer than 5 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 ten 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 sold or exchanged.