In April 2018, Mayor Jim Lienhoop and other community leaders submitted the State Street Corridor (Census Tract 108) to Governor Eric Holcomb to be named a Qualified Opportunity Zone. Governor Holcomb chose this corridor as one of 156 areas in the State of Indiana and submitted nominations to the U.S. Department of the Treasury. The Treasury, along with the Internal Revenue Service, has designated these areas to spur investment in distressed communities throughout the country. New investments in Opportunity Zones can receive preferential tax treatment.
Qualified Opportunity Zones retain this designation for 10 years. Investors may defer tax on gains until no later than December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund, an investment vehicle organized to make investments in Qualified Opportunity Zones. In addition, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in its basis equal to the fair market value of the investment on the date that it is sold, potentially eliminating any capital gains tax due on the investment.
Mayor Lienhoop said, “I am pleased that the State Street Corridor has been chosen as a Qualified Opportunity Zone. The City of Columbus has made a sizeable investment in this area and welcomes future private investment which will contribute to the continued revitalization of State Street. We are encouraged that others around the state see this as an area that has economic potential.”
The Treasury and the IRS have issued information on Qualified Opportunity Funds for appropriate structure in order to qualify for favorable tax treatment. Please see the site map for potential sites in the Opportunity Zone.
For more information, call Robin Hilber at (812) 376-2520.