The Tax Cuts and Jobs Act introduced a new concept into the tax law: qualified opportunity zones (Code §1400Z). The purpose of these zones is to induce investments in low-income communities by offering investors tax incentives. Qualified opportunity zone tax rules went into effect on Jan. 1, 2018. As yet, there are no existing investment opportunities, but here’s what is known so far.

Tax Breaks for Investors

Investors anywhere can take advantage of the tax breaks offered by making investments in qualified opportunity zones; they do not have to live or work within a designated area. For investments made by partnerships and S corporations, the tax breaks pass through to owners.