Texas Governor Greg Abbott announced the state’s Opportunity Zone designations. 628 census tracts in 145 counties were selected. The new program, signed into law in December as part of the tax overhaul measure, H.R. 1, allows investors to defer capital gains taxes for up to 9 years on gains invested in a Qualified Opportunity Fund. These Opportunity Funds must in turn invest in an Opportunity Zone.
Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones designated by the chief executives of every U.S. state and territory.