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.
Learn more about how businesses can benefit from locating in this new Opportunity Zone by visiting the City’s Community Development Opportunity Zone webpage.
