“On April 18, Governor Kay Ivey announced that Alabama’s Opportunity Zone nominations had received full approval from the U.S. Department of the Treasury and the IRS. The Columbiana area was nominated as Shelby County’s Opportunity Zone.
Ivey said. ‘Now we can take full advantage of this valuable tool provided through the Tax Cuts and Jobs Act to attract additional industry and jobs to our great state. We selected each Opportunity Zone with care, and with an eye toward making a positive difference with the greatest possible impact.’
Opportunity Zones are a new alternative economic development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term, private-sector investments in eligible urban and rural communities nationwide. The program provides a federal tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds dedicated for investing in designated Opportunity Zones.
‘ADECA will continue to support Governor Ivey’s efforts to ensure Alabama uses this new program to attract private-sector investment to low-income rural and urban areas of our state through federal tax deferrals,’ ADECA Director Kenneth Boswell said.
The Opportunity Zones will retain this designation for 10 years. Investors can defer tax on any prior gains until no later than December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund, an investment vehicle organized to make investments in Qualified Opportunity Zones. If the investor holds the investment in the Opportunity Fund for at least 10 years, the investor would be eligible for an increase in its basis equal to the fair market value of the investment on the date that it is sold.”