Our team makes strategic investments in QOZ communities by acquiring companies, real estate, and other assets in a variety of industries providing long-term, sustainable growth to QOZ communities and companies. Our investment projects are designed to deliver competitive returns to investors and stakeholders.

Opportunity Zones Initiative

What are Qualified Opportunity Zones

What are Qualified Opportunity Funds

Why Invest in Opportunity Funds

Taking a Deeper Look

QOZ Calculator

QOZ External Link Resources

Fund Investment Assets

QOF Alerts

An Innovative Tax-Advantaged Investment

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Opportunity Zones Initiative

The Hidden Gem in the 2017 Tax Cuts and Jobs Act (TCJA).

The Opportunity Zones Initiative was established by Congress in the Tax Cuts and Jobs Act (TCJA) in December 2017 as an innovative approach to spurring long-term private sector investments in low-income rural and urban communities nationwide. Suddenly, our nation has a brand-new path to bolstering and revitalizing distressed businesses and communities in approximately 8,800 approved areas known as Qualified Opportunity Zones (QOZs).

what are

Qualified

Opportunity Zones

Qualified Opportunity Zones (QOZs) are census tracts composed of economically distressed communities in the US that qualify for the Opportunity Zones Initiative, according to criteria outlined in 2017’s Tax Cuts and Jobs Act (TCJA).

On June 14, 2018, the U.S. Treasury and IRS finalized certification of the opportunity zones.

In total, 8,762 census tracts were certified as qualified opportunity zones. These zones are located in all 50 states, the District of Columbia, and all five inhabited overseas territories.

In December 2018, Puerto Rico was granted two additional opportunity zones, bringing the total to 8,764. View Opportunity Zone Map here.

Nearly 35 million Americans live in these zones, per 2015 American Community Survey data.

The average poverty rate in the opportunity zones is 32 percent, compared to 17 percent for the average census tract.

The designation of the QOZs will remain through December 31, 2028.

QOZ Property includes the following:

QOZ Business Property

Any tangible property—such as real estate and equipment—that must meet four criteria:
1. It must be used in the trade or business of a QOF.
2. It must be acquired by purchase after December 31, 2017.
3. It must either be originally used by the QOF in the QOZ or substantially improved by the QOF.
4. During substantially all of the time it is held by the QOF or the QOZB.

QOZ Stock

QOZ Stock – any stock in a domestic corporation, as long as it was acquired after December 31, 2017 at its original issue—directly or through an underwriter—from the corporation solely in exchange for cash. The corporation must specifically be an existing or new QOZ Business (QOZB) used solely for purposes directly associated with the approved area.

QOZ Partnership Interest
QOZ Partnership Interest –
any capital or profits interest in a domestic exchange if such interest was acquired after December 31, 2017 solely in exchange for cash. At the time such interest was acquired, the QOZPI had to be a QOZ Business (QOZB) used specifically for purposes directly associated with the approved area.
QOZ Map

Opportunity Zones

Qualified Census Tract:

QCT Definition

A Qualified Census Tract (QCT) is any census tract (or equivalent geographic area defined by the Census Bureau) in which at least 50% of households have an income less than 60% of the Area Median Gross Income (AMGI).

what are

Qualified

Opportunity Funds

A Qualified Opportunity Fund (QOF) is a new investment vehicle created as part of the Tax Cuts and Jobs Act (TCJA) of 2017 to incentivize investment in targeted communities called Qualified Opportunity Zones (QOZs) to spur economic development and job creation in these distressed urban and rural communities.

The Hidden Gem in the 2017 Tax Cuts and Jobs Act (TCJA)

How are QOZ communities impacted by your investment in QOFs?

As an investor of a QOF, your investment goes directly into the QOZ communities, improving businesses, infrastructure, and impacting lives. If businesses in QOZs thrive, the communities will have more jobs and better salaries to offer. More people will want to relocate to these areas, which will increase real estate values and breathe new life into local shops and stores. When residents and business owners are doing well, they spend more money on beautifying their homes, storefronts, public buildings, streets, parks, and monuments. Their infrastructure will improve, crime will decrease, and better health care will be available for residents. Spread out over many communities, QOFs can help our nation flourish as a whole.

Why invest in Opportunity Funds?

Investors can receive the following FOUR MAJOR BENEFITS by rolling their Capital Gains into a QOF within 180 days.

defer

Capital Gains

 

Investors can defer recognition of the capital gain invested until up to December 31, 2026 and postpone paying the federal tax obligation until the tax return due date in 2027.

Deferring their tax liability allows investors to put a greater amount of capital to work for a longer period of time. The ability to defer capital gains tax gives Opportunity Fund investors a major advantage in extending the earning power of their dollars.

reduce

Capital Gains

 

If an investor holds their QOF interest for 5 years, their federal deferred capital gain amount will be reduced by 10%. You MUST invest capital gains no later than December 31, 2021 to take the 10% Capital Gain Reduction.

after 10 years

No Additional Capital Gain Tax

 

If the investor holds the QOF investment for 10 years, any additional gain (in excess of the deferred gain recognized in 2026) on the sale of such QOF investment is not subject to federal income tax if sold prior to 2048.

receive

Income From Earnings

 

 Investors might also receive income distributions from the QOF’s earnings.

now,

Let’s Take A Deeper Look…

tax benefits

Any investor that recognizes an eligible capital gain for US federal income tax purposes may take advantage of the tax benefits of investing in a QOF, including individuals, corporations (which includes real estate investment trusts [REITs] and regulated investment companies), and partnerships.

investment time frame

Investors must invest in a QOF within 180 days of recognizing the eligible capital gain. The alternative option is to pay federal taxes.

QOF process

QOFs have up to 31 months to invest in a QOZ from the date funds are received from investors.

Defer capital gain

All or any portion of a capital gain may be deferred through an investment in a QOF.

QOF assets

A QOF must hold at least 90 percent of its assets in qualified opportunity zone property.

QOZ property

70 percent of the tangible property “owned or leased” by a business must be qualified opportunity zone property for a business to be considered a QOZ Business.

5 year hold

If an investor holds their QOF interest for 5 years, their federal deferred capital gain amount will be reduced by 10%. You MUST invest capital gains no later than December 31, 2021 to take the 10% Capital Gain Reduction.

10 year hold

If an investor holds the QOF interest for at least 10 years, all federal capital gains in excess of the amount recognized on December 31, 2026 will be 100% tax free.

deferring capital gain time frame

For federal income tax purposes, investors can defer recognition of the invested capital gain in the QOF until December 31, 2026, or until the sale of their QOF interest, whichever occurs first.

QOF investment benefits

An investor can both reduce capital gain amount (by up to 10%) and defer (e.g., until April 15, 2027) an obligation to pay federal taxes on a capital gain invested and held in a QOF.

liquidation time frame

The QOF, including all assets in the QOF, must be liquidated by December 31, 2047.

Calculate Your Potential

Use our calculator to estimate your potential earnings by investing through the PHT Opportunity Fund versus a standard stock portfolio.

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External Link Resources

Opportunity Zones Map

PHT Opportunity Fund

Distressed Communities Index

Key Insights from Ten Years of Change.

A decade ago, the financial crisis impacted our economy, our politics, and our society in ways few could have expected. Looking back now, we wondered: How did the Great Recession and subsequent recovery affect the health and trajectories of American communities? And how have the rewards of a long national expansion been distributed in local terms across different places and populations?

To find out, EIG used its Distressed Communities Index (DCI) to compare two distinct time periods: 2007-2011 and 2012-2016. The DCI combines seven complementary metrics into a single measure of economic well-being, resulting in a clear snapshot of the economic and social state of the U.S. zip codes, counties, cities, and congressional districts. Places are sorted into quintiles based on their performance on the index: Prosperous, comfortable, mid-tier, at risk, and distressed.

What we found amounts to a “Great Reshuffling” – a sorting of human capital, job creation, and business formation that has had vast implications for Americans and their communities. In the years following the recession, top-tier places have thrived, seeing meteoric growth in jobs, businesses, and population. Meanwhile, the number of people living in America’s most distressed zip codes is shrinking as the nature of distress becomes more rural. But the gaps in well-being between prosperous areas and the rest have grown wider, and national rates of growth have become more distant from the experience of the median community.

Opportunity Zones Facts & Figures

Economic Innovation Group

OPPORTUNITY ZONES RESOURCES

CDFI Fund

Opportunity Zones Frequently Asked Questions

US Internal Revenue Service

IRS and Treasury finalize Opportunity Zone guidance

US Internal Revenue Service

our funds

PHT Opportunity Fund LP

Fund I

The Redevelopment of an Iconic 28-Acre Commercial Pre-Cooling, Cooler & Processing Campus

Fund II

Acquisition & Development of
36 Acres on Salinas Ag-Industrial Center

Fund III

Pre-Cooling/Cooling Equipment Acquisition, Leasing & Financing

Fund IV

Micro-Grid Alternative Energy Solutions

Fund V

Material Handling and Automation Technology Platform

QOF Alerts

Why December 31, 2021 is a Date you Need to Know?

There appears to be a turning of the tide on the horizon. Runaway inflation is now a primary concern for investors, along with a host of other financial threats. An increase to the capital gains tax rate from a top rate of 23.8% to 39.6% is looking like a very real possibility, as are potentially higher income tax rates, both of which can stymie new investment in the private sector. Read more

IRS Paves Way for Foreign Investors in Opportunity Zones

On Monday, April 12, 2021, the Internal Revenue Service (IRS) issued a notice of proposed rulemaking to be published in the Federal Register on Wednesday, April 13, 2021 in regard to several Qualified Opportunity Zone (QOZ) incentives.  Read More

Pending HR 970 Opportunity Zone Extension Act

On February 11, 2021, U.S. Representatives Tim Burchett (TN-02) and Henry Cuellar (TX-28) introduced a new bill to the House Ways & Means Committee called the “Opportunity Zone Extension Act of 2021” (H.R.970). H.R.970 very simply proposes to replace the date “December 31, 2026” with “December 31, 2028” in Section 1400Z-2 of the Internal Revenue Code. Read more

an innovative

Tax-Advantaged Investment

If you’re planning to recognize a capital gain in the near future, or are interested in investing a portion of an existing unrealized capital gain, Opportunity Funds are one of the best ways to invest in communities and make a large impact, while receiving tax advantages along the way. A win-win all around!