Opportunity Zones Could Deliver Big Returns To Long Beach Neighborhoods, InvestorsRelease Date: 2019-02-25
By: Pierce Nahigyan
The federal government has created a major incentive for investing in low-income communities in the United States: the Qualified Opportunity Zone (QOZ) program. This program allows investors to postpone and exempt federal taxes on capital gains by investing in property and businesses in federal census tracts designated as opportunity zones. Nineteen such zones exist in the City of Long Beach, areas where new development could yield significant benefits for both investors and residents.
John Molina, a partner in Long Beach investment firm Pacific6, told the Business Journal that opportunity zones are an innovative approach to urban renewal. “Our economy doesn’t work unless everyone can participate in a meaningful way,” he said. “This gets investments into those areas and those communities that have lagged behind.” Pacific6 is currently seeking QOZ projects to invest in throughout Long Beach and Los Angeles County.
Created by the 2017 Tax Cut and Jobs Act, the QOZ program enables individuals, corporations or trusts to place realized capital gains into a Qualified Opportunity Fund, after which they have 180 days to invest in assets located within an opportunity zone.
Read more on the Long Beach Business Journal