By Housing Finance
The OZ incentive was created to stimulate economic development and job creation in distressed low-income communities by incentivizing long-term capital investment. The incentive offers capital gains tax relief to those who invest in these targeted distressed areas. There are more than 8,700 census tracts designated as OZs in all 50 states, the District of Columbia, and the U.S. territories.
For its progress report, the CEA examined OZ investments and activities through the end of 2019. Highlights include:
- Through the end of 2019, OZs have attracted $75 billion in capital investments. According to the report, this figure represents 21% of all annual investment in OZ communities.