Federal Tax Incentives to Spur Community Growth

Opportunity Zones encourage investors to re-invest their capital gains into underserved areas for long-term community building – with 14 zones located in Montgomery County. Private sector ‘Opportunity Funds’ provide investors the chance to use needed capital to rebuild select census tract areas. A broad array of investors can work together to pool resources, encourage new development and help re-energize underserved communities.

Promotes new investment and drive economic growth in communities
Enables Opportunity Zones to overlap with other programs including Maryland Arts & Entertainment Districts, Maryland Enterprise Zones, and Maryland RISE Zones

Allows select tax benefits to be realized through 2047
Encourages re-investment in communities over the next 10 years, under the 2017 Tax Cuts and Jobs Act
Provides tax deferral and tax relief opportunities for investors

Created through the Investing in Opportunity Act, which was part of the Tax Cuts and Jobs Act

how opportunity zone funding works

An Opportunity Fund is an investment vehicle, created as part of the Tax Cuts and Jobs Act of 2017, to provide incentive investment in targeted Opportunity Zones. For example, an investor who has a capital gain by selling an asset can receive special tax benefits. If the investor rolls that gain into an Opportunity Fund, the investor can:

  • Defer the payment of the capital gain until Dec. 31, 2026

  • Reduce the tax owed by up to 15% after 7 years

  • Pay zero tax on gains earned from the Opportunity Fund

CONNECT

Brandon_Bedford_2977.jpg

BRANDON BEDFORD
Research Planning and Policy Analyst

240.641.6717
brandon@thinkmoco.com



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Designated OZ Areas in MoCo

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SF in development pipeline

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OZs across Maryland

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Incentive types: Temp deferral, Step-Up in Basis, Perm Exclusion

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Step-up in basis increase if the investment is held for 5+ years


Map of Opportunity Zones

View the Opportunity Zone Narrative Data Map to see how investors and communities can benefit.

For more information, see the map of available Opportunity Zones in Montgomery County. Great opportunities for long term community building are available in different parts of the County.

AReas identified for OZ Community building

To see the areas that are designated as Opportunity Zones in Montgomery County, check out the Overview Map.

Silver Spring Central Business District (2 areas): overlaps with a Maryland Arts and Entertainment District and is home of United therapeutics, the National Oceanic and Atmospheric Administration (NOAA) and part of the future Purple Line route.

Wheaton Central Business District: Overlaps with a Maryland Enterprise Zone and a Maryland Arts and Entertainment District.

White Oak (2 areas): Home of the Food and Drug Administration (FDA) and Viva White Oak.

Germantown: Hub for Montgomery College’s Pickney Innovation Complex and a future Maryland Rise Zone.

Montgomery Village: Planned community conceptualized in the 1960s. It includes Montgomery Village Center Revitalization to transform a suburban shopping center into mixed use development.

Gaithersburg (3 select areas east of I-270)

Long Branch and Takoma Park (3 select areas east of Silver Spring): Along the future Purple Line Corridor which overlaps with a Maryland Enterprise Zone

Rockville Pike: Section between Rockville Town Square and White Flint

opportunity Zone Workshop

Montgomery County Economic Development Corporation and the Federal Reserve Bank of Richmond presented an Opportunity Zone Workshop February 5th at the AFI Silver Theatre and Cultural Center. Attendees learned more about the benefits derived from Opportunity Zones and complementing legislation from leading national experts along with County and State officials. The day also included tours of OZs and a chance to know more about potential investment projects.

View Agenda

Learn from the experts by accessing links from the previously recorded sessions:

Think Opportunity: Morning Session replay of MCEDC’s  February 5th Workshop - Live Stream.

Think Opportunity: Afternoon Session replay of MCEDC’s February 5th Workshop – Live Stream.

maryland oz information exchange

The Maryland Information Exchange lists particular properties currently available in Opportunity Zones across Maryland. In Montgomery County, the opportunities span from Viva White Oak and PIC MC to areas in Gaithersburg and Silver Spring. In addition, the exchange will serve as a virtual space for investors, fund managers, property developers and local stakeholders to get updates and learn more.

Access the Information Exchange to find available properties.