REASONS TO INVEST
Tax Benefits
Investments made by Qualified Opportunity Funds into certified Opportunity Zones can receive the following three key federal tax incentives designed to encourage investment in low-income communities:
- Deferral: Opportunity Zones investors may defer taxes on capital gains that are reinvested in a Qualified Opportunity Fund for up to five years.
- Basis step-up: After the deferral, Opportunity Zone investors receive a 10 percent reduction (or step-up in basis) on their deferred capital gains tax liability. This increases to 30 percent for rural investments.
- Tax-free growth: Gains on investments in Qualified Opportunity Funds held for 10 years or longer are exempt from federal capital gains tax.
Community Benefits
Indiana is in a strong position for Opportunity Zone investment because of the state’s competitive tax climate, efficient regulatory system, low permit backlog, AAA credit rating, and balanced state budget.
In addition to its pro-growth business environment, Indiana also has a diversified economy and a low cost of living. These factors help solidify Indiana as a safe and exciting place for investment where possibilities become realities without the headache of government overreach.