CNBC Video: Opportunity Zones Explained

CNBC Video: Opportunity Zone investments could transform low-income communities

October 19, 2018

In this video, CNBC analysts outline the potential of opportunity zone investments to transform low-income communities. The Savage Grant Opportunity Zone fund invests in designated opportunity zones in West Virginia and throughout central Appalachia.

“I can’t think of anything else that has the power to transform [low-income] communities the way this does.” – Mark Ein for CNBC

About Opportunity Zone Investments:

The Opportunity Zone program was established by the United States Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income communities nationwide. The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into areas chosen by the governors of each state.

Opportunity Zones spur economic development in low-income areas by providing tax benefits to private investors. Taxpayers can temporarily defer unrealized capital gains by investing in Qualified Opportunity Funds. After 5 years the basis of the investment is increased by 10% and then by an additional 5% if held for at least 7 years, thereby excluding up to 15% of the original gain from taxation. A permanent exclusion from taxable income of capital gains is available from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years. This exclusion only applies to the new gains accrued after the original unrealized gains were invested in an Opportunity Fund.

Contact us to learn more about Savage Grant’s West Virginia and Central Appalachia Opportunity Zone Fund.