Opportunity Zones (OZs) are a new investment tool created by the 2017 Tax Cuts and Jobs Act to stimulate investment and economic development in low-income communities. They do this by offering investors capital gains tax benefits in exchange for making investments in Opportunity Zones that can spur business and economic growth. The Woodland Opportunity Zone is Census Tracts 108 and 111.02 (see map). Census Tract 108 is bounded by Kentucky Avenue on the North, Main Street on the South, College Street on the West and Pioneer Ave to the East. Census Tract 111.02 is bounded by Main Street on the North, Gibson Road on the South, East Street on the West and Matmor Road on the East.
This new Opportunity Zone may be of interest to those within the zone considering new funding streams or those considering investing in new business ventures, property or expanding businesses needing funding support.
The City values receiving this Opportunity Zone designation and the targeted investments that may provide benefit to the community. The City’s role is to share information about Woodland's Opportunity Zone and does not have specific interests at stake. Investments are not administered or overseen by the City of Woodland. Pursuit of investments are the responsibility of the property or business owners. Download the City of Woodland Opportunity Zone Fact Sheet
The key benefits of an Opportunity Zone designation are that businesses and projects in the zone are eligible for investments from a new source of funding called Qualified Opportunity Funds. Investors are eligible for new tax benefits in exchange for investing in such funds.
Investments made by individuals through Qualified Opportunity Funds, would be allowed to defer or eliminate Federal taxes on capital gains. Investors can get the tax benefits, even if they don’t live, work or have a business in an Opportunity Zone. To qualify for tax deferrals, investors must invest the amount of the capital gain to be deferred into a Qualified Opportunity Funds. Those funds are required to invest 90% of their funds in Opportunity Zones. The longer the investment term, the greater the tax benefit. For example, a 10 year investment term can eliminate a capital gains tax.
Benefits to businesses and projects in zone:
-Access to incentivized & targeted funding source that can spur business / economic growth
-Ability to market their projects and solicit investments from any Qualified Opportunity Fund created anywhere in the U.S./U.S. Territories
Benefits to investors:
-New capital gains* tax break in return for investing in Opportunity Zones, the longer the investment, the greater the tax break
(*profit from sale of asset like stocks or real estate)
-Wide range of eligible investments including: new or existing businesses, property, equity (stock), partnership interest, equipment, infrastructure, etc.
-Ability to invest in Qualified Opportunity Funds created anywhere, and Opportunity Zones located anywhere in U.S./U.S. Territories
-Ability to defer capital gains tax and support local community by investing in a Woodland Opportunity Zone
Benefits to community:
-Ability to attract new investors & financing opportunities which may lead to beneficial projects and increased investments that can spur business and economic development
How to Get Started
Please visit the resources below for additional information. Of particular interest may be the California Opportunity Zone Marketplace website where you may review a listing of California Opportunity Zone properties/projects available for investment or market your own investment project.
State of California Resources
- CA Opportunity Zone Portal - Central clearinghouse for information about CA Opportunity Zones
- California OZ FAQ's - Answers to frequently asked questions about Opportunity Zones
- CA OZ Marketplace - Where to review or post CA Opportunity Zone investment projects
- CA OZ Toolkit
- CA OZ Interactive Map - Map of Opportunity Zones in California
- List of Qualified Opportunity Funds
- Federal OZ Resources – Federal Opportunity Zone Information and Resources
- Federal OZ Regulations (PDF) - Proposed OZ Regulations
- IRS News Release on OZ Tax Incentive
- IRS OZ FAQ – IRS answers to frequently asked questions about Opportunity Zones
OZ Designation Process
In June 2018 the U.S. Treasury Department evaluated and designated 8,761 low income census tracts in U.S. States and Territories as Opportunity Zones for a 10 year period, until 2026. The Woodland Opportunity Zone is two of 879 such zones designated in the State of California.
The designation process included U.S. States and U.S. Territories evaluating eligible low income census tracts in their jurisdictions and submitting their nominations for Opportunity Zone designations to the U.S Treasury Department by March 2018. To be eligible for nomination census tracts had to have poverty rates of 20 percent or higher, or median family incomes below 80 percent of statewide or metro area median family incomes. Each State or U.S. Territory could nominate up to 25% of their eligible census tracts, and up to 5% of those nominated census tracts could be in areas that were contiguous with low-income community census tracts.
City of Woodland Contacts
For more information, please contact:
Wendy Ross, Economic Development Manager, at firstname.lastname@example.org or 530-661-5921