OPPORTUNITY ZONES

The Opportunity Zone program is part of the 2017 Federal Tax Cuts and Jobs Act. By deferring capital gains from current holdings and reinvesting in projects located within one of Oklahoma City's 8 designated Opportunity Zones, investors can reduce capital gains taxes. If held for a decade, the added profit made from the Opportunity Zone investment will not be taxed at all. The Opportunity Zone incentives have no benefit cap and can be applied to a wide range of investments in real estate and operating companies.  Want to know more about the investment requirements?  Read the OKC Investment Prospectus.

WHY INVEST IN OKC OPPORTUNITY ZONES?

The list of reasons why you should invest in Oklahoma City is growing - almost as quickly as the list of reasons why people love living here. In Oklahoma City, we understand that partnership among business, government, economic development organizations and civic leaders is integral to our success. Let us introduce you to Oklahoma City: a city that has rediscovered its strengths - and redefined itself for the future. Our economic development partnership is here to help you create success. 

BUSINESS FRIENDLY

 

Strong cooperation between the City of Oklahoma City, the Greater Oklahoma City Chamber of Commerce and the economic development entities expedites business growth.

 

LABOR FORCE

Over the past decade: 

  • 7 % job growth 

  • Added 118,000 workers

  • 6 % growth in employees under the age of 29

WORLD MARKET ACCESS

  • 3 interstate highways run through the city

  • Renovated world  airport with five commercial carriers

  • Access to BSNF railway

STRONG START-UP CULTURE

  • 27%  small businesses in OKC 

  • 6  business incubators and maker spaces 

CULTURE & ENTERTAINMENT

  • OKC Thunder NBA team

  • 15 unique entertainment districts

  • Olympic-quality rowing facility and whitewater rapids

DIVERSIFIED ECONOMY

  • Top 10 Most Diversified Economies by WalletHub 2018

  • Major employers in aviation, education, health and energy

 

Every year, Oklahoma City rakes in awards and recognition for being business friendly. This means our city and our business climate make it easy to start or grow a business.  We have no unnecessary hurdles, knowledgeable staff who facilitate permitting and we have city departments and economic development entities that are accessible, collaborative and highly accountable. These accolades are a result of intentional policies and processes and very strong cooperation between the City of Oklahoma City, the Greater Oklahoma City Chamber of Commerce and the economic development entities.

BUSINESS-FRIENDLY CLIMATE

Every year, Oklahoma City rakes in awards and recognition for being business friendly. This means our city and our business climate make it easy to start or grow a business.  We have no unnecessary hurdles. Our knowledgeable staff facilitate permitting and our city departments and economic development entities are accessible, collaborative and highly accountable. These accolades are a result of intentional policies and processes and very strong cooperation between the City of Oklahoma City, the Greater Oklahoma City Chamber of Commerce and the economic development entities.

SEIZE YOUR OPPORTUNITY

In December of 2017, a federal bill, also known as the Tax Cuts and Jobs Act of 2017, was passed creating an incredible tax break for investors through a new program known as Opportunity Zones. Investors will be allowed to defer their capital gain taxes, as well as permanently exclude taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund.

Its purpose is to provide tax incentives, as well as temporary tax deferral on capital gains when investors reinvest these gains in Opportunity Funds. If these gains are kept in Opportunity Funds for more than 10 years, taxes will essentially be eliminated on any additional capital gains.

This bill allowed for the government to pin-point census tract locations that qualify to be Opportunity Zones.  There are 8 Opportunity Zones located in Oklahoma City.

OPPORTUNITY ZONE TAX INCENTIVES

Temporary

Deferral

A temporary deferral of inclusion in taxable income for capital gains reinvested into an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the Opportunity Zone investment is disposed of or December 31, 2026

Step-Up

In Basis

A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis is increased by 10% if the investment in the Opportunity Fund is held by the taxpayer for at least five years and by an additional 5% if held for at least seven years, thereby excluding up to 15% of the original gain from taxation.

Permanent Exclusion

A permanent exclusion from taxable income of capital gains 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 gains accrued after an investment in an Opportunity Fund.

Courtesy of Economic Innovation Group

To learn more about Oklahoma City, visit the Greater Oklahoma City ChamberMAPS 3 and the City of OKC.

Questions?

Contact Us:

405.604.6780

105 N. Hudson Ave., Ste 101

Oklahoma City, OK 73102

© 2019 OKC Opportunity Zones