Opportunity Zone Fund

The Savage Grant Opportunity Zone Fund invests capital in designated Opportunity Zones in West Virginia and Central Appalachia.

Frequently Asked Questions

What is the federal Opportunity Zone Program?

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.

What is an Opportunity Zone?

An Opportunity Zone is an economically-distressed census tract where new investments are eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by their state and that nomination has been certified by the Secretary of the U.S. Treasury.

See the full rules for Opportunity Zone investments.

How do Opportunity Zones work?

Opportunity Zones are designed to 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.

See the full rules for Opportunity Zone investments.

What is a Qualified Opportunity Zone Fund?

A Qualified Opportunity Fund is a vehicle for investing in eligible assets located in an Opportunity Zone. Those eligible assets include company stock, real estate, and other types of tangible property.

See the full rules for Opportunity Zone investments.

Do investors need to live in an Opportunity Zone to take advantage of the tax benefits?

No. You can get the tax benefits, even if you don’t live, work or have a business in an Opportunity Zone. All you need to do is invest in a Qualified Opportunity Fund.

Have Opportunity Zones been around a long time?

No, they are new. The first set of Opportunity Zones, covering parts of 18 states, were designated on April 9, 2018.

How does Savage Grant approach Opportunity Zone investing?

You can learn more about our investment approach here.