The Delaware Division of Small Business launches its Opportunity Zone 2.0 map.
Opportunity Zones are an economic development tool designed to help revitalize economically distressed areas by providing tax benefits to investors.
There are 61 census tracts eligible to be nominated for the next round of the program. Census tracts designated in the first round will sunset, and no longer be eligible for new investments after January 1.
So, those selected in the first round must submit again if they want to continue according to Patty Cannon, director of special projects for the Delaware Division of Small Business.
"If there's one misconception that I think some people have, it's that 'I already have an Opportunity Zone designation, and I'm getting ready to make my investment, I think I'm going to be okay.' You will not get the benefits of Opportunity Zone 2.0, unless that census tract is re-nominated, re-designated," said Cannon.
Those investing in Qualified Opportunity Zones get to defer payment of capital gains, reduce taxes owed for 7 years and eliminate tax on gains earned if the investment is held for 10 years.
Cannon says those who nominate an Opportunity Zone should get as much support as possible.
"Whether it's a potential investor, your banker, your real estate agent, your neighbors, businesses that you work with, have them nominate it too. Because when we sit down and go through this list, if we see that one census fact had 20 nominations, and they came from elected officials, economic developers and city planners. You say my gosh, there's something behind this. It almost demands our attention,” said Cannon. “It doesn't guarantee that it's going to get selected."
So far, 28 have been nominated with the deadline for submissions on May 15.
Gov. Matt Meyer has to submit 25 final nominations between July 1 and September 30 with the U.S. Treasury Department making the final designations.
