What Are Opportunity Zones?


The Opportunity Zone Program (OZ) is a tax incentive established by Congress in the Tax Cuts and Jobs Act of 2017. Its purpose is to foster investment into low-income and rural communities by allowing those who invest to defer and reduce their capital gains liability, and potentially pay ZERO tax on earnings from the investment.  There are 8,700 designated opportunity zones nationwide, and analysts predict that billions (and potentially trillions) of capital gains dollars will be invested into Opportunity Zones.  

 

By the end of this Summit, all attendees will know:

 

The timing requirements of an OZ deal.

How an OZ “Business” deal works vs. an OZ “real estate” deal.

Who to contact for additional information, assistance, or collaboration. 

How to stack incentives to get the most tax benefits.

Their options if they bought a project pre-OZ.

The economic differences between an OZ deal vs. a Non-OZ deal.

  

Who Should Attend?

Public Officials

Brokers

Investors

Developers

Attorneys

CPAs

Fund Managers

Bankers

Business Owners

 

BACKGROUND

 

EIG estimates that approximately $6 trillion in capital gains could be available for Opportunity Zone Investment in the US. We are already seeing billions of dollars being invested into areas like New York, Los Angeles, and Puerto Rico. The goal of the Reno-Sparks OZ Task Force and this Summit is to make sure as much of that money as possible comes to Northern Nevada to further our community’s goals and improve the lives of our people.  

 

Because of all the growth in Northern Nevada, commercial, retail, and residential development are inevitable. The addition of Opportunity Zones, makes investment into Northern Nevada real estate and business even more attractive.

 

The Opportunity Zone Program:

 

The Opportunity Zone Program (OZ) is a tax incentive established by Congress in the Tax Cuts and Jobs Act of 2017. Its purpose is to foster investment into low-income and rural communities by allowing those who invest to defer and reduce their capital gains liability, and potentially pay ZERO tax on earnings from the investment. There are 8,700 designated opportunity zones nationwide, and analysts predict that billions (and potentially trillions) of capital gains dollars will be invested into Opportunity Zones.

 

Nevada's Business Friendly Climate

 

In addition to having desirable Opportunity Zones locations, Northern Nevada is one of the fastest growing areas in the country. People and companies are flocking here because of Northern Nevada’s friendly business climate:

 

Ideal for shipping and transportation: Northern Nevada is at the center of the western region, with 11 states, 53 million people, and 5 major US ports only one day’s drive away.

 

Friendly tax environment:

  • No corporate income tax.
  • No personal income tax.
  • No franchise tax on income.
  • No inventory tax.
  • No inheritance or gift tax.
  • No unitary tax.
  • No estate tax.
  • Low start-up, regulatory, licensing, and annual fees.
  • An abundance of available commercial real estate. 
  • Able and willing workforce in right-to-work state. 
  • Close proximity to Lake Tahoe, wine country, and the San Francisco Bay Area.
  • Becoming a major technology hub largely due to the Tahoe Reno Industrial Center.
  • State incentives to help qualifying businesses do business in the state.

For more information: http://www.diversifynevada.com/

 

Because of all the growth, there is currently a need for housing, industrial/flex space, office, and commercial development.

 

Tahoe Reno Industrial Center (TRIC): The Tahoe Reno Industrial Center (TRIC) is a massive 107,000 acre park in Storey County that encompasses a developable 30,000 acre industrial complex. It is located approximately 9 miles east of the Reno-Sparks area on the I-80 freeway. Residents of TRIC include Tesla, Switch, Google, Blockchains, Wal-Mart, Petsmart, and Jet.com.

 

As part of an economic incentive package granted to Tesla to locate its Gigafactory in Nevada, Tesla committed to invest $5.95 billion and create 6,000 new jobs. To date, Tesla has created over 7,060 jobs and has generated significant regional economic growth in Northern Nevada which has attracted more tech companies and development. Additionally, Tesla committed to use vendors located in Nevada which has prompted additional companies to relocate and many more are coming.

 

All of TRIC is an Opportunity Zone!

 

Northern Nevada Growth: In 2018, twenty-nine companies moved or expanded in Northern Nevada creating over 2,000 new jobs mostly in the areas of technology, manufacturing, and distribution. As a result, there is a massive affordable and workforce housing shortage and a need for workforce development.  At this Summit we are going to explore all the needs and growth opportunities in our region as well as provide numerous networking and deal-making opportunities for anyone interested in OZ.