Low Tax Opportunity Zones in Southwest Florida
The federal government recently designated Immokalee, Golden Gate and Naples Manor as Low Tax Opportunity Zones. By reducing taxes in these areas, the government hopes to attract businesses that will invest over the long run, while also creating jobs.
In addition to businesses, reduced taxes will make it easier for developers and financial institutions to setup shop in these economically distressed areas.
As noted in a June 2018 news release by Collier County, locals are hoping that this decision will bring major growth to the area.
Jace Kentner, director of the Collier County Office of Business and Economic Development, noted the following:
“The Opportunity Zone designation will be a boon to our highest-need areas, Immokalee, Golden Gate and Naples Manor, and will boost growth investment. We look forward to seeing local investors and businesses take advantage of the benefits provided in our Opportunity Zones.”
What’s the Benefit to Investors?
Although there are Opportunity Zones in all 50 states, as well as the District of Columbia, many investors don’t understand what’s in it for them.
Investors in a qualified opportunity fund that invests in qualified Opportunity Zones have the opportunity to defer taxes on prior gains until December 31, 2026. This holds true even if an investor doesn’t work or live in the area, as long as they invest in a qualified opportunity fund.
Although these low tax opportunity zones were recently established, they’re beginning to attract businesses and investors from around the state. Keep an eye out for future developments, as there are sure to be many updates to come.